Guangda Securities: First coverage of Cambridge Technology with a "buy" rating as the light module business reaches a turning point.

Guangda Securities released a research report stating that the estimated net profit attributable to shareholders of Jiankang Technology for the years 2026 to 2028 would be 2.072 billion, 3.333 billion, and 5.259 billion RMB respectively, with year-on-year growth of 686%, 61%, and 58%. 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 the years 2026 to 2028, which is lower than the average PE ratio of comparable companies. Based on the following factors: 1) the company has already delivered 800G optical modules in bulk to core customers; 1.6T has completed customer sampling and is expected to enter mass production within 2026; 2) the company's expansion of the Malaysia factory has been smooth, and it has successfully passed certification from major customers, in addition to establishing partnerships with upstream suppliers of core materials such as optical chips, improving both production capacity and raw material supply; 3) ongoing research and development of cutting-edge optical communication technology, narrowing the gap with leading companies. The brokerage firm believes that the company has a certain scarcity and premium space, initiating coverage for Jiankang Technology with a "buy" rating.