Citi initiates coverage on Zhongji Innolight (03308.HK) with buy rating

Citi has issued a research report initiating coverage on Zhongji Innolight (03308.HK) H-shares with a buy rating and a target price of 1,524 HKD, based on a 16.2x 2027 price-to-earnings ratio. The bank projects a compound annual growth rate of 129% for revenue and 149% for net profit between 2025 and 2028. This growth is expected to be driven by strong demand for AI optical communication, bandwidth upgrades, increased production capacity, improved product mix, adoption of silicon photonics, and operating leverage. Citi highlights the company's comprehensive