Guosheng Securities: The upgrading of optical modules returns to a rational pace, reassessment of the value of passive devices and CPO.

Guosheng Securities released a research report stating that the optical module industry has entered a key period of technological iteration and demand restructuring, with 800G still being the mainstream product and the mass production cycle of 1.6T longer than the aggressive expectations. CPO technology is difficult to replace in the short term with plug-and-play solutions, while the market for passive devices is undergoing a revaluation. Guosheng Securities believes that the current industrial chain upgrade pace is returning to the 2-3 year iteration law, and the secondary market needs to rationally consider the matching of technological evolution and performance realization. At the same time, it is important to pay attention to the highly elastic opportunities in the sub-sectors of passive devices.