Minsheng Securities: Maintain a "recommended" rating for Changfei Optics, telecommunications market demand slowing down, main business improving quality and efficiency.

Minsheng Securities' research report pointed out that Changfei Optics achieved a net profit attributable to shareholders of 2.96 billion yuan in the first half of 2025, a decrease of 21.71% year-on-year. Performance is under short-term pressure, focusing on the application of new optical fiber products. The demand in the telecommunications market is slowing down, and the main business is improving in quality and efficiency. The company is seizing structural market opportunities to vigorously expand the widespread application of new optical fiber products. According to information released by the four major North American cloud service providers Microsoft, Google, META, and Amazon, the total capital expenditure in the second quarter of 2025 is approximately 95.8 billion US dollars, an increase of about 64% year-on-year, with an optimistic outlook for annual demand. The continued construction of domestic and foreign data centers is expected to drive steady growth in demand for the company's related products. The company's various businesses are steadily developing, and with the evolution of data center demand, the company is expected to benefit significantly. It is anticipated that the net profit attributable to shareholders for the years 2025-2027 will be 0.982 billion yuan, 10.38 billion yuan, and 11.06 billion yuan, respectively, with corresponding PE multiples of 70x, 66x, and 62x. The "recommendation" rating is maintained.