Dongwu Securities: Zhongji Xuchuang's performance greatly exceeds market expectations, maintaining a "buy" rating.

Dongwu Securities research report pointed out that Zhongjixuchuang is expected to achieve a net profit attributable to the mother of 36.0-44.0 billion yuan in 2025H1, an increase of 52.6% to 86.6% year-on-year, corresponding to a net profit attributable to the mother of 20.2 to 28.2 billion yuan in 2025Q2, with a median of 24.2 billion yuan, an increase of 80.4% year-on-year and 54.4% quarter-on-quarter. The company's performance significantly exceeds market expectations. The capital expenditures of first and second-tier cloud vendors are expected to remain strong in 2025, and the demand for AI computing power from enterprises and sovereign entities is also becoming apparent. From a technical perspective, while single-card iterations of GPU and ASIC are advancing, bandwidth optimization of multi-card interconnections has become a key bottleneck-solving path, directly driving the demand for bandwidth. It is expected that the demand for data center optical modules will further explode in 2025. In addition, Blackwell is driving a new round of growth, with the 1.6T optical module expected to accelerate penetration. Looking ahead to 2025H2 and beyond, it is believed that under the trend of cloud vendors continuously iterating network architectures, the company, with its comprehensive advantages in silicon photonics technology, vertical integration of the supply chain, and customer service, is poised to benefit deeply in the industry trends of 800G and 1.6T. Considering the continuous growth in overseas computing power demand, network architecture upgrades, and product upgrades, the company maintains a "buy" rating.