Zhongji Innolight to Ride Optical Interconnects Demand in AI Era
Dow Jones
Sep 07
0315 GMT - Zhongji Innolight could ride the promising demand for optical interconnects in the AI era, Citi analysts say in a research note. Innolight's revenue could grow at a compound annual growth rate of 129% between 2025-2028 thanks to strong AI optics demand, bandwidth upgrades, rapid capacity ramp ups and its improving product mix, they say. The optical transceiver maker could double its production capacity this year and more than double it next year to fulfill the rising demand, they say. Meanwhile, Innolight's blended average selling price should also increase thanks to the premiumization of its product mix, they say. Citi initiates its coverage on Innolight's H shares with a buy rating and a HK$1,524.00 target price. Shares are last at HK$1,125.00.
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