Goldman Sachs Initiates Coverage on Zhongji Innolight with Buy Rating, Target Price HK$3267

On September 7, Goldman Sachs released a report initiating coverage on Zhongji Innolight (03308.HK) with a Buy rating and a target price of HK$3267.

The bank expects the company's revenue compound annual growth rate (CAGR) to reach 78% from 2026 to 2028, driven by shipments of silicon photonics (SiPh) optical modules and the company's expansion beyond scale-out into scale-up and scale-across markets. The bank's net profit forecasts for 2026 and 2027 are 25% and 42% higher than market consensus, respectively. It also projects gross margin to improve from 42% in 2025 to 50% in 2028, with net profit CAGR of 84% from 2026 to 2028. (Jin Shi)

[TechFlow]