【Changjiang Communications】Firmly Bullish on Innolight

English summary

The company announced that Chairman and President Liu Sheng proposed to repurchase RMB 4B-8B of shares using company's own funds, with price ceiling at 150% of the 30-trading-day average price before board review. Price side: #market rumors do not match reality; no vicious price competition in the industry; current demand is strong, core materials and high-quality capacity remain tight, mainstream product prices and gross margins stable; #in 2027, multiple new products will enter volume ramp-up, further boosting gross margin. Landscape: new suppliers are mainly concentrated in 800G; 1.6T still requires strict certification, interoperability testing, and scale delivery validation, #few manufacturers have stable mass production capability; with evolution to 2.4T, NPO/CPO, technology and manufacturing barriers further increase, advantages of leading manufacturers continue to strengthen. Demand: customers have essentially confirmed 2026 orders; some customers have locked 2027 orders, #2027 demand certainty is high. ...