Goldman Sachs: Optical Communications Supply Chain Demand Prospects Positive, Mid-Level Innox (03308) Rating “Buy”

The Zhitong Finance App learned that Goldman Sachs released a research report stating that it maintains a “neutral” rating for ASMPT (00522), with a target price of HK$177; the rating for Zhongji Xuchuang (03308) is a “buy” rating, and the target price is HK$3,267. Earlier, Goldman Sachs visited a number of optical companies in Hong Kong, Taiwan and Suzhou, covering fields such as optical modules, photonic integrated circuit testing and coupling equipment, fiber array units (FAU) for NPO/CPO, and InP epitaxial wafer/CW lasers, including Zhongji Xuchuang, Dongshan Precision (002384.SZ), Huagong Technology (000988.SZ), Cambridge Technology (06166), Xizhi Technology (01879), ASMPT, etc. The surveyed companies maintained a positive view on optical module demand and are expected to benefit from AI server rack capacity, expansion of optical module application scale, and specification upgrades.

Goldman Sachs previously raised demand forecasts for 800G and above optical modules by 39% and 36% in 2027 and 2028, respectively, to 144 million and 171 million units, respectively. According to the bank, global demand for 800G and 1.6T may reach 130 million to 200 million units; overall demand in the Chinese market can also record a medium double digit year-on-year increase, reaching more than 50 million units. However, the supply of raw materials such as DSP, lasers, and PCBs is tight, and shipments may continue to be restricted next year.