Optical module frontrunner Zhongji Innolight Co., Ltd. (SZSE: 300308) has secured strong endorsement from both institutional investors and the broader market. On September 7, Goldman Sachs resumed coverage of the company's A-shares with a "Buy" rating and initiated coverage on its H-shares, propelling the stock significantly higher and lifting its total market capitalization back into the trillion-yuan tier.
This Monday, Zhongji Innolight Co., Ltd. (SZSE: 300308) A-shares briefly touched 900 yuan per share intraday, surging over 10% with trading volume exceeding 30 billion yuan, pushing total market value to 1.06 trillion yuan. H-shares also rallied, gaining more than 16% at one point. Goldman Sachs set a 12-month price target of 2,645 yuan for the A-shares, implying approximately 225% upside from current levels, with an H-share target of 3,267 Hong Kong dollars, reflecting a similar magnitude of potential appreciation.
The core of Goldman's thesis centers on the accelerating mass production ramp of 1.6T and higher optical module solutions. The investment bank projects a 78% revenue compound annual growth rate for Zhongji Innolight Co., Ltd. (SZSE: 300308) from 2026 to 2028, noting that its 2026 and 2027 net profit forecasts are 25% and 42% above market consensus, respectively, driven by a more optimistic assessment of revenue growth and gross margins. Additionally, the company's recently announced 4 billion to 8 billion yuan share buyback program has further reinforced market confidence.
Goldman: Silicon Photonics Leadership is the Core Premium Driver
In its report, Goldman Sachs positioned Zhongji Innolight Co., Ltd. (SZSE: 300308) as a leading global supplier of optical interconnect solutions, emphasizing the company's significant competitive advantage in silicon photonics (SiPh) based optical modules.
The report stated that growth in SiPh module shipments and diversification into scale-up and scale-across markets will serve as two key revenue engines. Goldman noted that the iterative upgrades of next-generation AI platforms—such as the advancement of NVIDIA's Rubin and Rubin Ultra architectures—will drive continuous specification upgrades for optical modules, creating opportunities for product mix optimization. For valuation, Goldman applied a peer-based correlation between earnings growth and operating margins to derive a 35.6x target P/E for A-shares, while H-share valuation incorporates a 13% H-A premium on top of that.
Key Market Divergence: 1.6T Ramp-Up and CPO Competition
Goldman's report thoroughly examined the core market debates surrounding Zhongji Innolight Co., Ltd. (SZSE: 300308). The analysts attribute the gap between their forecasts and consensus primarily to a more positive outlook on the accelerated production ramp of 1.6T and higher solutions, as well as a favorable assessment of supply chain stability and production base diversification.
Regarding concerns about co-packaged optics (CPO) technology potentially disrupting the traditional pluggable optical module market, Goldman views this competitive threat as "manageable" and not posing material short-term risk. Beyond the accelerated rollout of 1.6T/3.2T modules, Goldman highlighted specification upgrades from next-generation AI platform migrations and incremental revenue from near-package optics (NPO) solutions as key developments worth monitoring.
Corporate actions are also providing support for the stock. On the evening of August 31, Zhongji Innolight Co., Ltd. (SZSE: 300308) disclosed a 4 billion to 8 billion yuan share buyback plan, with all repurchased shares designated for equity incentives and employee stock ownership plans, aiming to closely align core team interests with the company's long-term growth. The buyback was implemented the day after the announcement, and as of September 4, the company had executed repurchases for four consecutive trading days, with cumulative buyback value exceeding 1.3 billion yuan.