\u3000\u30 Beijing Jingyeda Technology Co.Ltd(003005) 02 Eoptolink Technology Inc.Ltd(300502) )
Event overview: according to the report of Xunshi optical communication network, recently Eoptolink Technology Inc.Ltd(300502) announced the launch of its 400gzr / Zr + coherent optical module. The application scenarios are data center interconnection (DCI) and metropolitan area network.
With the rapid growth of traffic and the rapid improvement of optical communication transmission rate, the application scenario of coherent technology continues to sink and extend. Coherent technology has sunk from the past backbone network (> 1000km) to metropolitan area (100 ~ 1000km) and even edge access network (100km). On the other hand, in the field of data communication, coherent technology has also become the mainstream scheme of interconnection between data centers (80 ~ 120km).
Coherent optical modules have a broad market space, and optical module manufacturers in the traditional incoherent field also begin to cut in: with the continuous sinking of coherent technology, coherent optical modules usher in a period of rapid development. According to lightcounting, the global market sales of DWDM optical modules using coherent technology will reach US $1 billion in 2020 and is expected to reach US $2.5 billion by 2025, with a compound annual growth rate of 20.1%. By then, the proportion of optical modules for coherent detection in data center interconnection scenarios is expected to increase from 39% in 2020 to 78% in 2025. The popularity of the coherent market is also attracting new participants. In addition to the traditional coherent optical module manufacturers such as infinera, Cisco (Acacia), ciena, lumentum, Huawei and ZTE, some traditional non coherent optical module manufacturers represented by Zhongji Innolight Co.Ltd(300308) have also begun to join in recent years.
The company has further improved the overall layout of optical module business in relevant fields and expanded the growth space in the future: Eoptolink Technology Inc.Ltd(300502) the coherent optical module products released this time include 400gqsfp56-ddzr and 400gqsfp56-ddzr +, with transmission distances of 120km and 480km respectively, Both products adopt the optical engine based on silicon photon school and the latest generation of digital signal processor (DSP) supporting 400g coherent transmission. The company's years of technology and experience accumulation, excellent cost control ability and stable and strong supply chain in the field of optical modules will help the company continue to promote in the field of relevant optical modules and broaden the growth space in the future.
Investment suggestion: we expect the net profit attributable to the parent company from 2021 to 2023 to be RMB 659 / 818 / 1054 million respectively, and the corresponding PE multiple is 28x / 23x / 18x. As the leading enterprise in the field of optical modules, the company will fully benefit from the large demand in the data communication market and telecom market. At the same time, with the accelerated layout in the fields of coherence, 800g and silicon light, it is expected to further open the growth space in the future. Maintain a "recommended" rating.
Risk tip: the downstream demand is less than expected, the industry competition intensifies, and the price of optical module decreases too much
