Zhongji Innolight Co.,Ltd., a leading optical module manufacturer, saw its market capitalization exceed one trillion yuan during trading on April 23, with its stock price rising nearly 3%. This achievement makes it the second computing hardware stock, following Industrial Fulian, to reach this milestone. The company's stock has surged over 1000% since April 22 of last year. According to its first-quarter 2026 financial report, Zhongji Innolight reported a net profit of 5.735 billion yuan, representing year-on-year and quarter-on-quarter increases of 262.28% and 56.48%, respectively.
Among popular ETFs, the ChiNext Artificial Intelligence ETF Huabao (159363), which holds significant positions in leading optical module companies, continued to break through with increased trading volume, reaching a new intraday price high. As of April 22, the underlying index of this high-performing ETF has accumulated a remarkable gain of 202% over the past year, significantly outperforming other AI-themed indices in the broader market and demonstrating sustained excess returns.
Zhongji Innolight delivered an exceptionally strong performance in the first quarter of 2026. The company's achievement of surpassing a one trillion yuan market cap is primarily attributed to its rapid earnings growth. The net profit increased by 262.28% year-on-year, setting a historical record for a single quarter. This growth was mainly driven by robust investment in computing infrastructure by end customers, leading to continuous growth in product shipments. Concurrently, prepayments surged by 1009.48% year-on-year, indicating the company's significant increase in raw material and equipment procurement to meet market demand, signaling active capacity expansion. The early disclosure of the quarterly report also reflects management's confidence in the company's performance.
The stock's cumulative increase of over 900% is closely linked to its leading position in the optical module sector, particularly its dominance in high-speed modules like 800G and 1.6T, which has bolstered long-term growth expectations. Additionally, the company has mitigated risks associated with overseas procurement of key raw materials through foreign exchange hedging and international expansion, further enhancing operational stability. Overall, against the backdrop of exploding demand for computing power, Zhongji Innolight has achieved breakthroughs in both performance and market value through its technological advantages and capacity expansion.
The optical communication leader reported impressive first-quarter 2026 results, with adjusted net profit reaching 5.718 billion yuan, up 264.56% year-on-year and nearly 60% quarter-on-quarter. This was primarily fueled by strong AI computing demand driving sustained shipment growth. The company's gross margin continued to improve steadily to approximately 46%, benefiting from an increased proportion of high-end products like 1.6T and 800G, further penetration of silicon photonics modules, and improved yield rates. The gross margin is expected to maintain a stable or slightly increasing trend this year.
In the first year of the "16th Five-Year Plan" period, the optical module industry continues to experience rising prosperity. Domestic demand shows an upgrade trend from 400G to 800G/1.6T, while the development of AI applications is driving higher computing power requirements, leading to increases in both volume and price. Overseas demand remains robust, with major cloud providers' 2026 capital expenditures consistently exceeding expectations. GPU performance enhancements are clearly driving upgrades to higher-speed optical modules, accelerating the volume release of high-speed, high-value products.
The company's customers have provided demand guidance for 2026-2027, with some key clients already planning for 2028 demand, indicating further increases in capital expenditures, a broader product portfolio, and higher quantities. Against a backdrop of tight upstream component supply and persistently strong end-demand, optical module manufacturers have a solid foundation for continued earnings delivery.
As a leader in the optical module industry, Zhongji Innolight's trillion-yuan market cap signifies its leading position and strong growth potential. The company's standout first-quarter 2026 performance, with net profit soaring to 5.735 billion yuan (up 262.28% YoY and 56.48% QoQ), is largely attributable to explosive growth in AI computing demand and sustained infrastructure investment by end customers. The massive 1009.48% increase in prepayments reflects proactive capacity expansion to meet market demand, laying the groundwork for future growth.
The optical module sector is in a high-growth cycle overall. Overseas cloud capital expenditures exceed expectations, the upgrade trend to 800G/1.6T high-speed products is clear, and the logic of volume and price increases remains strong. The company possesses significant technological advantages, and product mix optimization is driving steady gross margin improvement. Effective foreign exchange risk management safeguards operational stability. In the inaugural year of the "16th Five-Year Plan," domestic AI application and computing power demand are rising further. Coupled with opportunities from maturing CPO technology and upstream supply chain penetration, Zhongji Innolight is well-positioned to continue benefiting from industry tailwinds, with substantial room for earnings growth and prominent investment value.
For investors seeking exposure to optical module and CPO opportunities, the ChiNext Artificial Intelligence ETF Huabao (159363) and its feeder funds (Class A: 023407, Class C: 023408) are key instruments to consider. The ETF's underlying index allocates approximately 70% to computing power (including leading optical module/CPO companies) and about 30% to AI applications, offering a comprehensive portfolio.
Data shows that as of April 21, 2026, the ChiNext Artificial Intelligence ETF Huabao had a net asset value of 6.613 billion yuan, with a six-month average daily trading volume exceeding 700 million yuan, ranking first in both size and trading activity among 26 ETFs tracking various AI indices.
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