Haitong International has initiated research coverage on XIZHI TECH-P (01879), assigning an "Outperform" rating.

The firm's valuation employs a top-down methodology based on total market capitalization, citing the company's established market position in optical interconnect and computing, its accumulated technical expertise, and its unique status as a pioneer in AI photonic computing and interconnect.

By referencing the combined market capitalization of seven representative A-share optical module and CPO (Co-Packaged Optics) companies and applying a 2% penetration rate assumption, Haitong International projects a total target market cap for the company of approximately RMB 54.7 billion (around HK$62.9 billion).

This valuation corresponds to a target share price of HK$668.

The report highlights several near-term catalysts for the stock, suggesting investors monitor developments in July, August, and September.

In July, during the World Artificial Intelligence Conference (WAIC), key focus areas include progress updates on the dOCS optical interconnect and switching super-node from the 18th, alongside demonstrations of NPO (Near-Packaged Optics) products and technologies and CPO technology solutions, with NPO anticipated as a major product for the year and CPO commercialization representing a significant milestone.

For August, attention should turn to the company's earnings preview and interim results, with a particular emphasis on customer expansion and new order intake.

In September, the analysis notes the stock's potential for inclusion in the Southbound Stock Connect scheme, given its recent Hong Kong listing, which could attract incremental capital inflows.