Yuanta Securities: Maintains a "buy" recommendation for New Easy Joy, with the expectation that the market share of high-speed optical modules will increase rapidly.

Yuanta Securities research report pointed out that in the second quarter, Xin Yi Sheng's profit returned to a high-speed growth track, and its market share in high-speed optical modules is expected to increase rapidly. The company is expected to achieve a net profit attributable to the parent company of 7-8 billion yuan in the first half of 2026, a year-on-year increase of 77.6%-102.9%; of which the Q2 net profit attributable to the parent company is expected to be 4.22-5.22 billion yuan, a year-on-year increase of 78.1%-102.3%. Performance meets expectations, and Q2 is back on the high-speed growth track compared to the previous quarter, with significant improvement expected in material shortages. In the future, with downstream demand continuing to remain high and material and supply chain stability improving, the company's performance is expected to maintain a relatively high growth rate in the second half of the year. Thailand's production capacity continues to be released, delivery capacity continues to improve, and there is rich technical reserves for future products such as 1.6T and AEC cable modules. The current stock price corresponds to a P/E ratio of 36/28/22 for A shares in 2026-2028, maintaining a "buy" recommendation.