The semiconductor laser industry leader, “Horizontal+Vertical” Deep Layout Industry Chain Company was established in 2012 and successfully listed on the Shanghai Stock Exchange Science and Technology Innovation Board in 2022, focusing on the semiconductor laser industry, adhering to the “one platform, one fulcrum, horizontal expansion, and vertical expansion” development strategy, using the core technology and full-process manufacturing process of high-power semiconductor laser chips as a fulcrum, expanding horizontally to VCSEL, InP optical communication chips, GaN and SiC. The vertical extension realizes the entire chip-device-module-semiconductor laser industry chain layout, creating a multi-product series matrix. The company has built a full-process IDM process platform covering chip design, epitaxial extension, lithography, decontamination, packaging testing, optical fiber coupling, etc. The core technology product performance has reached the international advanced level and is in a leading position in the country.

GaAs has a wide range of high-power customers, and Vcsel has three major applications

In the field of GaAs high-power optical chips, the company has accumulated industry leaders and well-known enterprise customers such as Ruike Laser, Chuangxin Laser, Dazu Laser, Jepter, and Fibo Laser. In the field of national strategic high technology and scientific research, the company's high-power bar series products can achieve continuous 50-250W laser output, quasi-continuous pulse 500-1000W laser output, electro-optical conversion efficiency of over 63%, and has served many national key units. At the same time, VCSEL products are deployed in fields such as consumer electronics, optical communications (25G, 50G Vcsel), and automotive lidar chips, and some products have already been sold.

InP has been cultivated for many years, and high-speed digital optical chips are expected to become a new growth point for 400G/800G transmission rate solutions for data center applications. Traditional DFB laser chips cannot simultaneously meet the requirements of high bandwidth performance and high yield in the short term, and EML laser chips need to be considered to achieve the high-speed transmission characteristics of 100G with a single wavelength. Changguang began laying out indium phosphide laser chip production lines in 2010. Currently, various products such as 10G EML, 100mW CW (using silicon light), and single-wave 100GEML have been supplied to the market for sample verification and partial batch supply. The applications cover various applications at 10G and 100G-800G rates in access networks and data centers.

Laying out the Chaoyang market for GaN and SiC chips

1) The company established Suzhou Gallium Ruixin as a joint venture with the Suzhou Nano Institute of the Chinese Academy of Sciences. The company has developed the first domestic gallium nitride-based blue light and green laser chip to fill the domestic gap, and is expected to build the largest domestic mass production line for gallium nitride laser chips in 2024. 2) Changguang Huaxin cooperated with Qingchun Semiconductor to establish Suzhou Weiqing Semiconductor Company. Its future products are mainly chip products for automotive SiC drivers, mainly to seize opportunities for rapid development in new energy industries such as electric vehicles.

Profit forecasting and investment advice

The company's net profit for 2024-2026 is expected to be 44 million yuan, 82 million yuan, and 95 million yuan, respectively. The valuation is high, corresponding to price-earnings ratios of 2024-2025, which is 143 times and 76 times, respectively. However, based on the company's competitive advantage in single-tube and bar chips and the layout of new businesses such as indium phosphide, gallium nitride, and silicon carbide, it is expected to open up new growth space and give a “gain” rating for the first time.

Risk warning: risk of loss of performance; risk of technology upgrade iteration; risk of high customer concentration: increased risk of market competition; risk of downstream recovery and falling short of expectations.