On Friday evening, January 30, as Zhongji Innolight and Eoptolink Technology successively disclosed their 2025 annual performance forecasts, the full-year earnings outlook for the A-share CPO concept leaders—collectively nicknamed "Yizhongtian"—was officially revealed. According to the announcements, all three companies are projected to achieve substantial year-on-year growth in net profit attributable to shareholders for 2025. Eoptolink Technology delivered the most impressive performance, with its annual net profit more than tripling compared to the previous year. Zhongji Innolight anticipates its highest annual net profit to double from the prior year, while Tianfu Communication, which reported last week, expects a steady net profit increase of over 40%. The earnings forecasts from these three firms underscore the continued benefits reaped by the high-speed optical module and component supply chain amidst the global wave of artificial intelligence (AI) computing infrastructure development. As leaders in their niche segments, Zhongji Innolight and Eoptolink have seen both revenue and profits climb against the backdrop of tight supply and demand for high-speed products. Tianfu Communication, meanwhile, has achieved steady growth through its diversified product portfolio and manufacturing efficiency. Against the ongoing global expansion of data centers and upgrades to AI infrastructure, the positive earnings previews from the "Yizhongtian" trio highlight the robust growth prospects within the CPO and optical communication sectors. They also provide a "report card" level of data as the industry heads into 2026. The CPO concept stocks collectively strengthened this past Friday, with Zhongji Innolight closing up over 5.7%, Eoptolink rising more than 6.7%, and Tianfu Communication surging 10.9%. Zhongji Innolight: High-End Optical Modules Drive Dual Growth in Revenue and Profit According to the company's announcement, Zhongji Innolight expects its 2025 net profit attributable to shareholders to be in the range of 9.80 billion to 11.80 billion yuan, representing an increase of approximately 89.5% to 128.2% compared to the roughly 5.17 billion yuan reported for 2024. After excluding non-recurring gains and losses, net profit is projected to grow by 91.4% to 130.8% year-on-year. The announcement indicated that the company's performance growth is primarily driven by end customers' continued strong investment in computing infrastructure, leading to rapid growth in shipments of optical module products, particularly an increased proportion of high-speed modules. Furthermore, optimizations in product solutions and improvements in operational efficiency have also contributed to enhanced profit margins. Certain one-time factors, such as share-based payment expenses, inventory impairment provisions, and foreign exchange losses, had a slight negative impact on profits, but the overall upward trend in profitability remains clear. Zhongji Innolight had already demonstrated strong growth momentum in its 2025 interim and quarterly reports, with first-half net profit surging over 50% year-on-year, indicating a solid foundation for its full-year performance growth. Eoptolink Technology: Sustained High Growth Momentum as Demand for Computing Products Surges Eoptolink Technology anticipates its 2025 net profit attributable to shareholders to be between 94 billion and 99 billion yuan, a massive year-on-year increase of 231.24% to 248.86%. The range for net profit after excluding non-recurring items also indicates robust operational performance, showcasing strong underlying business growth drivers. The company's announcement emphasized that this performance is primarily fueled by continuously growing AI-driven computing investments and rapidly rising market demand for high-speed products, including optical communication devices. Building on its performance forecast for the first half of the year, where net profit had already surged over 320% year-on-year, the full-year high-growth trajectory is attributed to strong order intake and high-level product delivery throughput throughout the year. Eoptolink has demonstrated excellence in optimizing its product mix and deepening its presence in high-margin niche markets, which has provided a solid foundation for its explosive profit growth for the year. Tianfu Communication: Steady Growth Backed by Gradual Value Realization in Niche Markets Tianfu Communication's 2025 performance forecast indicates an expected net profit between 18.81 billion and 21.50 billion yuan, representing year-on-year growth of approximately 40% to 60%. Net profit after excluding non-recurring gains and losses is also projected to increase by a similar margin. Analyses from the announcement and research institutions suggest the company's growth is primarily benefiting from the accelerated development of the AI industry, ongoing global data center construction, and its stable delivery capabilities for both active and passive high-speed optical device product lines. Additionally, its smart manufacturing initiatives, aimed at cost reduction and efficiency gains, have contributed to steady profitability. Factors like foreign exchange losses slightly increased financial expenses, but the overall growth trajectory remains stable and upward. Considering its third-quarter report, which showed a 50% year-on-year increase in net profit for the first three quarters to 14.65 billion yuan, the full-year earnings forecast largely aligns with market expectations.
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