As a leading one-stop solution supplier for optical communication in China, the company has core competitiveness such as independent controllable optical chip research and development capability+vertically integrated optical communication entire industry chain technology+large-scale mass production and delivery capability+high-quality customer resources. The company has a leading domestic optical communication product matrix to provide downstream customers with a full range of optical modules, passive optical devices, and optical chips one-stop optical communication solutions. The company is one of the few enterprises in the domestic optical communication industry with a full industrial chain layout from optical chip-optical device-optical module-subsystem. The upstream core optical chip company currently provides three product platforms: laser chips, detector chips, and silicon optical chips. The company has multiple technology platforms such as COC, hybrid integration, planar optical waveguides, and MEMIS devices to provide technical support for the company's passive and active products.
The AIGC model and applications continue to be iteratively upgraded, which is expected to drive the continuous increase in demand for high-speed optical modules such as 800G. In 2025, the global optical module industry is expected to usher in a rapid expansion in the penetration rate of two major new technology products, silicon light and 1.6T. As global AI companies continue to launch large-scale AI models and applications such as productivity and MIR Entertainment, global demand for high-speed optical modules is expected to maintain a rapid growth trend. It is expected that by 2025, high-end optical module products in the form of silicon light and 1.6T technology will usher in opportunities for rapid increase in penetration rate, and leading optical module companies in the industry will fully benefit.
The company's data and access business is expected to benefit from increased demand for domestic AI computing power construction and ushered in a performance volume cycle. As the construction of domestic intelligent computing centers accelerates and domestic computing power chip technology becomes more mature, the demand for high-speed optical modules and related optical devices in the domestic digital communication market is expected to usher in rapid growth. With years of deep cultivation in the domestic digital communication market, the company has now accumulated customer resources from leading domestic cloud computing vendors including ByteDance, Alibaba, Tencent, and Ali. 800G/1.6T products are expected to gradually expand, driving the company's data and access business into a stage of performance expansion.
Profit forecast and investment suggestions: Guangxun Technology is a leading enterprise with scarce chip self-research capabilities in the domestic optoelectronic device field. We are optimistic that the company will benefit from the construction of data centers in East Digital and Western Computing and the continuous increase in demand brought about by the AIGC era to achieve rapid growth in performance. The company is expected to generate revenue of 7.841/9.697/11.672 billion yuan in 2024-2026, achieve net profit of 0.817/1.005/1.22 billion yuan, corresponding to EPS 1.03/1.27/1.54 yuan/share, and maintain a “buy” rating.
Risk warning: Digital communication and telecom market demand falls short of expectations, customer growth falls short of expectations.