China A-share · SZSE · 300308
Zhongji Innolight (300308) stock analysis: valuation and financials
计算机、通信和其他电子设备制造业
¥646.77 -0.2% Price as of Oct 21, 2026
The optical module leader has strong growth and profitability and net cash, but customer concentration and weak cash flow; the current price is 21.5% above the benchmark.
- Market cap
- ¥761.8B
- P/E
- 37.2x
- EV/Sales
- 11.6x
- FCF yield
- 0.4%
- 52-week range
- ¥439.68 – ¥1,380.20
Research as of Oct 21, 2026 · Translated from the Chinese report
Business quality scorecard
- Growth100
- Profitability82
- Cash flow36
- Balance sheet100
- Capital allocation67
- Innovation58
- Valuation50
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
It sells high-speed optical communication transceiver modules to overseas cloud vendors and equipment vendors; this business accounts for 97.95% of revenue and a gross margin of 42.0%, and is the sole profit engine.
Financials by year
| FY2021Jan–Dec 2021 | FY2022Jan–Dec 2022 | FY2023Jan–Dec 2023 | FY2024Jan–Dec 2024 | FY2025Jan–Dec 2025 | |
|---|---|---|---|---|---|
| Revenue | ¥7.7B | ¥9.6B | ¥10.7B | ¥23.9B | ¥38.2B |
| Revenue growth | +9.2% | +25.3% | +11.2% | +122.6% | +60.3% |
| Gross margin | 25.6% | 29.3% | 33.0% | 33.8% | 42.0% |
| Operating margin | 12.5% | 13.8% | 23.3% | 25.4% | 35.6% |
| Net income | ¥877.0M | ¥1.2B | ¥2.2B | ¥5.2B | ¥10.8B |
| Free cash flow | -¥26.8M | ¥1.7B | ¥192.7M | ¥298.4M | ¥8.1B |
| FCF margin | -0.3% | 17.2% | 1.8% | 1.3% | 21.3% |
Amounts in CNY · What is free cash flow?
Margins Gross margin 33.8% (FY2024) → 42.0% (FY2025) → 45.35% (TTM), 46.42% (2026Q2); operating margin 25.4% → 35.6% (TTM 39.8%). The main reason is that revenue increased 60.3% while operating costs increased only 40.3%, with scale dilution combined with a higher share of high-speed products.
- Cash flow WatchCash conversion rate 0.88; FY2025 operating cash flow of RMB10.90 billion basically matched net profit of RMB10.80 billion, but TTM operating cash flow of RMB9.48 billion was only 46% of net profit of RMB20.45 billion.
- Debt LowNet cash of RMB7.19 billion, net debt/EBITDA of -0.49x; total debt of RMB1.74 billion, debt/equity of only 4.4%, and negative leverage.
Balance sheet Leverage · Net cash
- Cash & short-term investments
- ¥8.9B
- Total debt
- ¥1.7B
- Net cash
- ¥7.2B
- Interest coverage
- 429.1x
- Current ratio
- 2.6x
As of Jun 30, 2026 · Amounts in CNY · How to read a balance sheet
Management and track record
- Management StrongROIC rose from 9.98% in 2020 to 56.85% in 2025, with a gross margin of 45.35% and a net margin of 31.36%; execution and pricing capabilities are outstanding.
Valuation range
Implied value per share · Price when researched: ¥646.77
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
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