Shanghai, Feb 1, 2026, 07:26 (GMT+8) — The market has closed.
- Shares ended the day 5.7% higher, closing at 649 yuan, following a profit forecast for 2025
- The company forecasted net profit attributable to shareholders in 2025 to range between 9.8 billion and 11.8 billion yuan
- Executives informed investors that orders extend through 2026, with critical optical-chip supplies remaining constrained in the first half
Zhongji Innolight’s Class A shares jumped 5.7% to close at 649 yuan on Friday, pushing gains further as investors weighed the company’s updated profit forecast ahead of the next trading day. Over the past year, the stock has surged roughly 465%, according to exchange-traded data.
Markets are closed for the weekend, but all eyes will be on Monday to see if the momentum holds as China’s profit-preview season picks up pace and investors continue piling into AI-related hardware stocks. Zhongji is part of that flow.
Optical modules serve as the high-speed “plugs” transporting data within data centres. As cloud companies expand AI clusters, demand rises for faster connections linking servers, switches, and chips — putting pressure on suppliers capable of delivering at scale.
In a Jan. 31 filing, the company projected 2025 net profit attributable to shareholders between 9.8 billion yuan and 11.8 billion yuan — an increase of 89.5% to 128.17% compared to last year. Profit excluding non-recurring items, which covers one-off gains and losses, was estimated at 9.7 billion to 11.7 billion yuan. The company noted stock-based compensation expenses around 223 million yuan, impairment charges on inventory and receivables near 113 million yuan, and foreign-exchange losses linked to a weaker dollar of about 270 million yuan. These hits were partially offset by roughly 296 million yuan in investment and fair-value gains. The filing stressed these figures are preliminary and unaudited.
During a weekend call with investors, Wang Xiaoli and Wang Jun reported steady quarterly revenue growth through 2025, with margins improving as shipments shifted toward higher-end products and more silicon-photonics designs. “Many customer orders have already been placed through the fourth quarter of 2026,” they noted in the meeting record. They also said 1.6T products began shipping to key customers in Q3 and accelerated in Q4. CNInfo
Put simply, 800G and 1.6T stand for 800 gigabit and 1.6 terabit-per-second data rates. Silicon photonics relies on silicon-based parts to cram more optical functions into compact, energy-saving modules.
The positive outlook wasn’t isolated. Eoptolink Technology Co., Ltd. projected net profit attributable to shareholders for 2025 between 9.4 billion yuan and 9.9 billion yuan, more than triple the previous year, according to a filing dated Jan. 30.
Still, the weekend update highlighted some immediate hurdles. Executives noted that supply of certain upstream components — like EML and CW laser chips, essential for generating and modulating light — remains constrained. They don’t expect much relief before the second half, despite efforts to secure capacity with suppliers.
Pricing remains a key variable. Management noted that annual price drops are still “a general rule” for optical modules as volumes increase. Investors are now zeroing in on whether cost reductions and product mix shifts can hold margins steady.
Next week’s question is clear: will the stock keep its gains once the market reopens, or will it slip as traders cash in after a steep multi-month rally? Keep an eye on volume and any early profit warnings in the sector.
Zhongji Innolight’s next earnings report is set for March 31, according to data-provider calendars tracking full-year results.
