Guangda Securities: First coverage of Cambridge Technology Inc. (06166) with a "buy" rating, the light module business has reached a turning point.

As informed by the Wise Finance APP, China Everbright Securities released a research report predicting that Cambridge Technology (06166) will have a net profit attributable to the parent company of 2.072 billion, 3.333 billion, and 5.259 billion RMB for the years 2026-2028, with year-on-year growth of 686%, 61%, and 58% respectively. The company's stock price on May 22, 2026 was 142.7 Hong Kong dollars, corresponding to a PE ratio of 21x, 13x, and 8x for 2026-2028, which is lower than the average PE ratio of comparable companies. Based on: 1) the company's 800G optical module has been mass shipped to core customers; 1.6T has completed customer sampling and is expected to enter mass production by 2026; 2) the company's expansion of production in Malaysia is progressing smoothly, successfully passing the certification of major customers, coupled with the improvement in capacity and raw material bottlenecks from core material suppliers, and 3) continuous research and development of cutting-edge optical communication technology, with hopes of narrowing the gap with leading companies. The firm believes that the company has a certain scarcity value and premium space, initiating coverage for the first time and giving Cambridge Technology a "buy" rating.