Citi: Initiates Coverage on Zhongji Innolight H-Shares with Buy Rating, Target Price HK$1,524

Odaily News Citi released a research report stating it has initiated coverage on Zhongji Innolight (03308.HK) H-shares with a Buy rating and a target price of HK$1,524, based on 16.2 times forecast 2027 price-to-earnings ratio. The firm expects the company's revenue and net profit compound annual growth rate to reach 129% and 149%, respectively, from 2025 to 2028, driven by strong AI optical communications demand, bandwidth upgrades, rapid production capacity expansion, improved product mix, rising silicon photonics technology adoption, and operating leverage. The firm believes that the company's comprehensive product portfolio, scalable production capabilities, cutting-edge technological progress and R&D capabilities, flexible and resilient supply chain, as well as solid relationships with leading global cloud service providers and AI customers, are expected to support its leading position in the AI era. (Jin Shi)