Huachuang Securities research reports pointed out that eoptolink technology inc., (300502.SZ) is one of the few domestic enterprises that mass deliver 100G, 200G, 400G, 800G high-speed optical modules for datacenter market, mastering high-speed optical device chip packaging and optical device packaging. The company is one of the domestic manufacturers that first entered the overseas customer supplier system. Currently, the company has established good cooperation relationships with mainstream global communications equipment manufacturers and internet plus-related manufacturers. The proportion of the company's overseas business revenue continues to increase, reaching 83.8% in 2023.
In May 2024, the company released the 'Chengdu eoptolink Communication Technology Co., Ltd. convertible enterprise bonds issuance plan to unspecified objects’. According to the company's feasibility analysis report, it is expected that the company will raise funds to invest in the construction project of optical module production line, adding an annual production capacity of 2.95 million high-speed optical modules, laying the foundation for the company's performance growth.
The company is a leading provider of optical module solutions and services in the industry, expected to continuously benefit from the strong demand for optical modules brought by AI construction. The company is expected to experience rapid growth in revenue and profits. Initial coverage with a 'recommended' rating.