A-share subscription | Huadongguang (920045.BJ), a manufacturer in the field of optical communication, opens subscription. Product application end users include companies such as Google and Microsoft.

On December 23, Hengdongguang (920045.BJ) started its IPO subscription, with an issue price of 31.59 yuan per share, a subscription limit of 461,200 shares, a P/E ratio of 14.99 times, and belonging to the North Exchange. CMSC is its sponsoring institution. The prospectus disclosed that Hengdongguang focuses on the research, development, manufacturing, and sales of passive optical devices in the field of optical communications. Its main business segments include passive optical fiber cabling, passive interconnecting optical devices, and related supporting businesses. Its main products include optical fiber connectors, optical fiber flexible cable products, distribution management products, etc., as well as multiple optical fiber parallel passive interconnecting optical devices, PON optical module passive interconnecting optical devices, and other interconnecting optical devices. Hengdongguang has established long-term stable cooperation relationships with major customers such as AFL, Coherent, Jabil, Telamon, CCI, Cloud Light, Feisuinnovation, Hisense, and other well-known domestic and foreign companies. Products are applied to global leading large brands such as AT&T, Verizon, Google, Amazon, Microsoft, Oracle, Tencent, IBM, Cadence, NVIDIA, with major end users being Google, Amazon, Microsoft, and Oracle. Data centers, as an important application area in the optical communication industry, have developed rapidly in recent years under the driving force of digital transformation in major countries and large enterprises worldwide. According to a report released by Dell'Oro Group, global data center capital spending is expected to grow by 51% in 2024, reaching $455 billion, and it is projected that global data center capital spending will increase by over 30% in 2025, mainly driven by the continuous growth in AI infrastructure demand and the widespread recovery of server and network general infrastructure. Since 2023, generative AI represented by ChatGPT has placed higher demands on computing power. Giants such as Google, Amazon, Microsoft, NVIDIA have successively laid out large models, bringing a huge increase in demand for optical communication products. Behind the ChatGPT technology is a more than hundredfold increase in AI model parameters, leading to an explosive growth in the computing power and data requirements needed to train the model. According to Lightcounting, the market size of core products in the global optical communication industry chain, such as optical modules, will exceed $20 billion in 2027, with data centers becoming the largest application market. Financially, in 2022, 2023, and 2024, the company achieved operating income of approximately 475 million yuan, 613 million yuan, and 1.315 billion yuan, respectively, and net profits of approximately 55.3344 million yuan, 65.0812 million yuan, and 148 million yuan, respectively.