Optical module market enters a period of high-speed development

 Optical module market enters a period of high-speed development

The continuous increase of orders and significant improvement of performance have pushed up the share price of xinyisheng to some extent. According to the announcement, in the first quarter of 2020, the company continued to make progress in market development, achieving a net profit of 56.2162 million yuan, a substantial increase over the same period last year, with a year-on-year increase of 73.45%. In addition, xinyisheng has made many breakthroughs in the R & D of high-speed optical module and 5g related optical module projects in 2019. Meanwhile, the proportion of sales of high-speed optical module products has also increased significantly. The annual net profit reached 213 million yuan, a year-on-year increase of 568.68%. The growth rate of net profit ranks first among 132 A-share listed companies in Sichuan Province.

An institutional investor told Securities Daily, xinyisheng is a typical track first mover advantage. Under the advantage of overseas 100g customers, the companys 400g optical module products are superior to domestic optical module enterprises except Zhongji xuchuang. Now the capacity of the new infrastructure digital center is expanding very fast, so the demand side market of 100g is very certain. With the companys refined management, the cost advantage is reflected. .

As for the main reason why the stock price of xinyisheng has kept rising this year, an analyst of a securities company who did not want to be named told the Securities Daily, first of all, the demand of optical module industry is obvious. As an important part of 5g infrastructure, with the increase of 5g base station construction, the acceleration of new infrastructure and the rapid growth of cloud computing will give birth to new demand for optical modules. Secondly, the new Eason 400g series optical module products are leading in the industry. Compared with 100g optical module products, 400g optical module is more high-end. At present, new Eason has successfully produced the 400g series optical module products with the lowest power consumption in the industry, and two 400g optical module products have been officially commercially used. .

As an optical module solution and service provider, xinyisheng has been deeply engaged in the field of optical communication industry since its establishment in 2008, focusing on the R & D, production and sales of optical modules. According to a recent report released by yole, the market size of optical modules will reach about 7.7 billion US dollars in 2019, and it is expected to grow to about 17.7 billion US dollars by 2025, with a compound annual growth rate of 15%. The rapid expansion of optical module market mainly benefits from the synchronous development of data center and 5g network construction.

In March of this year, xinyisheng issued a fixed increase announcement. The raised funds of the planned non-public offering of shares will not exceed 1.65 billion yuan (including 1.35 billion yuan), of which 1.35 billion yuan will be invested in the high-speed optical module production line project. The main production expansion direction includes 5g communication optical module, 100g optical module and 400g optical module. After reaching the production capacity, the annual production capacity of 2.85 million high-speed optical modules will be increased. Will excess capacity be formed after the project is completed? According to the above analysts, as a major supplier of ZTE and a high-quality manufacturer that has entered the supply chain of Nokia and Ericsson, the downstream orders should be relatively stable.

Xinyisheng said in the announcement that the completion and completion of the high-speed optical module production line will help to promote the upgrading of the companys optical communication module products and the improvement of the overall R & D level, and consolidate the companys dominant position in the optical communication market segment.

Source: responsible editor of Securities Daily: Yang Bin_ NF4368