CICC: High demand growth for optical modules, optical manufacturers expected to build new growth curve.

Zhongjin released a research report stating that according to LightCounting's prediction, the market size of 100G and above pluggable optical modules will increase from nearly 20 billion US dollars in 2025 to over 50 billion US dollars in 2030. The market size of CPO in 2030 is expected to reach 10 billion US dollars. With the high increase in demand for optical communication and speed enhancement, the importance of passive optical components is becoming increasingly prominent. Optical manufacturers are gradually entering the field of optical communication from consumer electronics, and their core technology and large-scale high-reliability production capabilities are transferable, potentially building a new growth curve. Key points from Zhongjin are as follows: High increase in demand for optical modules, importance of passive devices highlighted According to LightCounting's prediction, the market size of 100G and above pluggable optical modules will increase from nearly 20 billion US dollars in 2025 to over 50 billion US dollars in 2030. The market size of CPO in 2030 is expected to reach 10 billion US dollars. Lenses, prisms, wavelength multiplexing devices, isolators, FAUs, and other passive devices play an important role in optical signal transmission and precise coupling, accounting for approximately 11% of the optical module BOM. As the speed increases to 1.6T and above, the alignment accuracy requirement has increased to sub-micron level, and the driving process has upgraded from traditional optical processing to semiconductor micro/nano processing. Continuous evolution of optical interconnection routes, rising demand for passive devices Each channel of pluggable optical modules contains multiple discrete optical elements. CPO integrates the optical engine and switching chip, requiring high-density high-precision micro lens arrays and FAUs to achieve fiber-to-chip waveguide coupling. OCS full optical path transmission, core components include fiber collimator arrays of up to over a hundred channels, MEMS mirror arrays, and monitoring systems. CPC replaces traditional board-level transmission with short-distance copper cable connectors. It is expected that multiple routes will evolve in parallel, opening up growth space for various passive devices. Core technology of consumer electronics manufacturers can be transferred, establishing a new growth curve Optical manufacturers have long been engaged in the "billion-level" market of consumer electronics, automotive, etc., accumulating deep expertise in super-precision machining, molding, coating, nano-imprinting, photolithography, etching, etc., and possessing high yield and high reliability mass production capabilities. Many manufacturers have extended their products to optical communication micro lenses/arrays, V-grooves/FAUs, and even optical modules, actively seizing the incremental demand for pluggable devices and strategically positioning themselves in the fields of CPO, OCS, etc., potentially bringing strong growth momentum to the company. Target recommendations Recommended: Zhejiang Lante Optics (688127.SH), Zhejiang Crystal-optech (002273.SZ), Suzhou Dongshan Precision Manufacturing (002384.SZ), suggested to pay attention to AAC TECH (02018), Ningbo Yong Xin Optics (603297.SH). Risk factors Optical interconnection demand falls short of expectations; Industrialization of CPO, OCS, CPC falls short of expectations; Companies' product development progress falls short of expectations; Industry competition intensifies.