Goldman Sachs has kicked off coverage on the H-shares of ZJ INNOLIGHT with a "Buy" rating and a 12-month price target of HK$3,267. The firm's net profit projections for 2026 and 2027 surpass market consensus estimates by 25% and 42%, respectively, driven by more optimistic assumptions around revenue and gross margins. Analyst Verena Jeng and her team noted in a report that the elevated expectations stem from their positive outlook on the company's leadership in silicon photonics modules, the accelerated ramp-up of 1.6T and higher-generation solutions, a resilient supply chain alongside diversified manufacturing bases, and manageable competitive pressure from co-packaged optics (CPO) technology.

The analysts highlighted that ZJ INNOLIGHT, with its extensive experience serving cloud service provider (CSP) clients and participating in the artificial intelligence infrastructure supply chain, is better positioned than its peers to swiftly adapt to shifting demand patterns and evolving product specifications. This agility, they argued, underpins the company's ability to sustain its competitive edge and capitalize on industry tailwinds in the near term.

Separately, Goldman Sachs reaffirmed its "Buy" recommendation on the A-shares of Zhongji Innolight Co.,Ltd., maintaining a price target of RMB 2,645 per share, aligning with the firm's sustained confidence in the company's growth trajectory across both listing venues.