1Q26收益：璀璨如流星

1Q26earnings:Brighter than a shooting star Innolight delivered a standout 1Q26, with revenuejumping192% YoY/47.3%QoQ to RMB19.5bn (vs. Bloomberg consensus of RMB15.4bn), and net profitsurging262% YoY/56.5% QoQ to RMB5.7bn (vs. RMB4.4bn consensus), bothmarking new quarterly highs.During the period,GPMexpanded further to 46.1%(vs.44.5%in 4Q25),primarily due to improving mix and rising SiPhopenetration.Mgmt. framed the strong quarter not as a one-off outperformancebut asa reflection of sustained demand strength and improved execution, withrobustcapacity ramp-up,including Thailand,and resilient raw material Target PriceRMB1080.00(Previous TPRMB707.00)Up/Downside33.4%Current PriceRMB809.61 China Semiconductors Kevin ZHANG(852) 3761 8727kevinzhang@cmbi.com.hk 800G and 1.6T rampedupin tandem, with rising SiPho mix furtherlifting margin.Revenue strength was driven by concurrent ramp-upin both800G and 1.6T products, indicating that growth is broadening across thecompany’s high-end optical portfolio rather than being tied to a singleproduct inflection. Mgmt.highlighted meaningful contribution from both800G and 1.6T shipments in 1Q26, with the richer product mix continuing to Aaron GUO(852) 3916 3715aaronguo@cmbi.com.hk NPO is the earlier catalyst, while XPO provides broader deploymentflexibility.Mgmt.indicated NPO has already received explicit customerdemand indications and could enter volume production in 2027, with the usecase tied primarily to scale-up architectures. XPO, by contrast, is still inactive customer promotion, but was positioned across both scale-up and Maintain BUY with TPrevisedto RMB1,080 onrollover28x 2027EP/E,supported by an order backlog that now stretches through 2026 andinto 2027 (andevenbeyond).In our view,what stood out this quarter wasnot only the magnitude of the beat, but the quality of execution behind it:Capacity expansion landedon time, supply-chain preparationremainedeffective despite tight upstream conditions,whileproduct mixwas moving Source: FactSet Disclosures& Disclaimers Analyst Certification The research analyst who is primary responsible for the content ofthis research report, in whole or in part, certifies that with respect to the securities or issuerthat the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about the subject securities or issuer;and (2)no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific views expressed by that analyst in this report.Besides, the analyst confirms that neither the analyst nor his/her associates (as defined in the code of conduct issued by The Hong Kong Securities and Futures Commission) (1) have dealt in or traded in the stock(s) covered in this research report within 30 calendar days prior to thedate of issue of this report; (2) willdeal in or trade in the stock(s) covered in this research report 3 business days after the date of issue of this report; (3) serve as an officer of anyof the HongKong listed companies covered in this report; and (4) have any financial interests in the Hong Kong listed companies covered in this report. CMBIGM RatingsBUY : Stock with potential return of over 15% over next 12 monthsHOLD: Stock with potential return of +15% to-10% over next 12 monthsSELL: Stock with potential loss of over 10% over next 12 monthsNOTRATED: Stock is not rated byCMBIGM :Industry expected to outperform the relevant broad market benchmark over next 12 months:Industry expected to perform in-line with the relevant broad market benchmark over next 12 months:Industry expected to underperform the relevant broad market benchmark over next 12 months Address: 45/F, Champion Tower, 3 Garden Road, Hong Kong, Tel:(852) 3900 0888 Fax: (852) 3900 0800CMB InternationalGlobal MarketsLimited (“CMBIGM”) is a wholly owned subsidiary of CMB International Capital Corporation Limited (a wholly ownedsubsidiary of China Merchants Bank) Important Disclosures There are risks involved in transacting in any securities. The information contained in this report may not be suitable forthe purposes of all investors.CMBIGMdoes not provide individually tailored investment advice. This report has been prepared without regard to the individual investment objectives, financial positionor special requirements. Past performance has no indication of future performance, and actual events may differ materially from that which is contained in thereport.The value of, and returns from, any investments are uncertain and are not guaranteed and may fluctuate as a result of their dependence on the or its affiliate(s) to whom it is distributed.This report is not and should not be construed as an offer or solicitation tobuy or sell any security or any interest insecurities or enter into any transaction.NeitherCMBIGMnor any of its affiliates, shareholders, agents, consultants, directors, officers or employees shall beliable for any loss, damage or expense whats