On September 7, Citi released a research report, initiating coverage on Zhongji Innolight (03308.HK) H shares with a Buy rating and setting a target price of HK$1,524. This target price is based on a forecasted price-to-earnings (P/E) ratio of 16.2 times for 2027. Citi expects Zhongji Innolight to achieve a compound annual growth rate (CAGR) of 129% in revenue and 149% in net profit from 2025 to 2028. This growth is primarily driven by robust demand for AI optical communications, bandwidth upgrades, rapid capacity expansion, product portfolio optimization, increased adoption of silicon photonics technology, and operating leverage effects. Citi believes that Zhongji Innolight's comprehensive product portfolio, scalable production capabilities, cutting-edge R&D strength, flexible and resilient supply chain, and solid partnerships with leading global cloud service providers and AI clients will enable it to maintain a leading position in the AI era.