Zhongji InnoLight: 800G optical module shipments increased significantly in the second half of the year
26 Feb 2024
中际旭创 recently released its financial report for the first half of 2023. During this period, the company achieved an operating income of approximately 4.004 billion yuan, a decrease of 5.37% year-on-year; the net profit attributable to shareholders of the listed company was approximately 614 million yuan, an increase of 24.63% year-on-year; and the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was approximately 583 million yuan, an increase of 31.55% year-on-year.
During investor inquiries, Zhongji Xuchuang stated that the demand and orders for the company's 800G products are continuously increasing. It is anticipated that the shipment volume of 800G in the second half of this year will significantly increase compared to the first half. The gross profit margin of 800G is higher than that of other products. With ongoing cost reduction efforts, the company is expected to maintain its current gross profit margin level.
The company has begun to gradually expand its 800G production capacity to enhance order delivery capabilities to meet the rapid growth in demand for 800G from major customers. It is expected that capital expenditure in this area will continue to increase.
Regarding 400G, benefiting from some customers choosing 400G optical modules for AI computing architecture Ethernet switches, the demand for 400G next year will increase substantially, far exceeding the demand for 400G in traditional cloud data centers. Therefore, in addition to the significant increase in demand for 800G, there will also be a noticeable increase in demand for 400G next year, which is noteworthy for both the industry and the company.
Regarding the industry's focus on silicon optical modules, Zhongji Xuchuang believes that the penetration of silicon optical modules into the market will be a gradual process. It is expected that the company will mass-produce 400G silicon optical modules to meet customer demand next year, but the traditional EML solution will still occupy a higher proportion. The 800G silicon optical module is currently in the verification phase, but shipments of 800G silicon optical modules will commence next year. In the era of 1.6T, the proportion of silicon optical modules is expected to increase further to reduce power consumption. Silicon optical modules have certain advantages in terms of BOM cost compared to traditional EML solutions.
Looking at the domestic market, Zhongji Xuchuang believes that starting from the second quarter of this year, the domestic market's demand for 400G optical modules has gradually increased, largely driven by the demand for AI computing power. However, there has not been a significant increase in the demand for optical modules needed for traditional cloud business in the domestic market. It is expected that the demand for 400G in the domestic market next year will be higher.
During investor inquiries, Zhongji Xuchuang stated that the demand and orders for the company's 800G products are continuously increasing. It is anticipated that the shipment volume of 800G in the second half of this year will significantly increase compared to the first half. The gross profit margin of 800G is higher than that of other products. With ongoing cost reduction efforts, the company is expected to maintain its current gross profit margin level.
The company has begun to gradually expand its 800G production capacity to enhance order delivery capabilities to meet the rapid growth in demand for 800G from major customers. It is expected that capital expenditure in this area will continue to increase.
Regarding 400G, benefiting from some customers choosing 400G optical modules for AI computing architecture Ethernet switches, the demand for 400G next year will increase substantially, far exceeding the demand for 400G in traditional cloud data centers. Therefore, in addition to the significant increase in demand for 800G, there will also be a noticeable increase in demand for 400G next year, which is noteworthy for both the industry and the company.
Regarding the industry's focus on silicon optical modules, Zhongji Xuchuang believes that the penetration of silicon optical modules into the market will be a gradual process. It is expected that the company will mass-produce 400G silicon optical modules to meet customer demand next year, but the traditional EML solution will still occupy a higher proportion. The 800G silicon optical module is currently in the verification phase, but shipments of 800G silicon optical modules will commence next year. In the era of 1.6T, the proportion of silicon optical modules is expected to increase further to reduce power consumption. Silicon optical modules have certain advantages in terms of BOM cost compared to traditional EML solutions.
Looking at the domestic market, Zhongji Xuchuang believes that starting from the second quarter of this year, the domestic market's demand for 400G optical modules has gradually increased, largely driven by the demand for AI computing power. However, there has not been a significant increase in the demand for optical modules needed for traditional cloud business in the domestic market. It is expected that the demand for 400G in the domestic market next year will be higher.