The 720 Innolight & Optical Transceivers, China Strategy, Samsung Electronics, SEMICON takeaways, Recruit, CMB, Data Centers

Equity Research 7 September 2026 | 7:18AM HKT

The 720: Innolight & Optical Transceivers, China Strategy, Samsung Electronics, SEMICON takeaways, Recruit, CMB, Data Centers

In Focus | Innolight & Optical Transceivers Michael Snaith | Innolight – Optical specification upgrade towards 1.6T and above; initiate H-share Goldman Sachs (Asia) L.L.C.

and reinstate A-share – Buy. We reinstate coverage of Innolight’s A-shares at Buy with Caleb Chan | a 12m TP of Rmb2,645 and initiate its H-shares at Buy with a 12m TP of HK$3,267, Goldman Sachs (Asia) L.L.C.

viewing the company as the leading global provider of optical interconnect solutions. We forecast revenue to grow at a 78% CAGR over 2026-2028E, driven by rising silicon photonics-based optical module shipments and market expansion into scale-up and scale-across solutions. Our 2026 and 2027 net income forecasts sit 25% and 42% above consensus, reflecting our positive view on the accelerating ramp-up of 1.6T and above solutions, a stable supply chain, and manageable CPO competition. Verena Jeng

Global Optical transceivers – Raising 1.6T and above shipment for 2026-28E; continuous mix upgrade ahead. We raise our global optical transceiver shipment forecasts by 21%, 31%, and 31% for 2026-2028E, reflecting higher shipments of rack-level and ASIC AI servers, increased optical module usage per GPU, and ongoing specification upgrades. We expect 800G and 1.6T shipments to reach 45m and 33m units in 2026E, growing to 49m and 71m in 2027E, with 3.2T shipments ramping up to 23m in 2027E. We remain constructive on optical transceiver growth driven by AI infrastructure spending and product mix upgrades, maintaining Buy ratings on key supply chain beneficiaries including Eoptolink, FOCI, Landmark, VPEC, and RoboTechnik. Allen Chang

Listen Up - GS Webcasts on the Agenda

China in Motion: Macro & Strategy | 10am HK | Global Macro, Activity Data, RMB, Market Views | Access Webinar | with Hui Shan, Lisheng Wang, Yuting Yang, Kinger Lau, Si Fu & Kevin Wang (in Mandarin)

China Strategy | Earnings Season

China Musings – 2Q/1H26 Earnings Brochure: Where to find growth beyond AI?. We observe a strong 2Q26 earnings rebound led by A-shares and Hard Tech, with All-China net profit growth accelerating to +24% yoy, marking the highest quarterly growth in five years. While upstream and cyclical sectors benefited from PPI reflation, downstream consumer sectors continued to face soft demand, and the AI profit pool shifted heavily toward semiconductor hardware. With offshore Internet earnings bottoming out and AI fueling a capex upcycle, we highlight a list of

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Buy-rated companies demonstrating strong earnings growth and positive revision momentum across non-AI hardware sectors, including Healthcare, Financials, Consumer, Shipbuilding, and Materials. Kevin Wang

GS Event | Samsung Electronics

Samsung Electronics – 7 key takeaways from NDR: Focusing on technology leadership – Buy (on CL). We reiterate our Buy rating (on CL) following North American investor meetings where management reiterated expectations for 2027 memory supply to be tighter than 2026, with tightness persisting into 2028. The company is prioritizing technology leadership, noting strong demand for advanced foundry nodes and progressing long-term agreement (LTA) discussions that offer better visibility and more efficient investment decisions. Management highlighted that rising customization needs bode well for its combined memory and foundry capabilities, and noted that all options, including buybacks and dividends, are being considered for shareholder returns. Giuni Lee

Themes in Play | SEMICON takeaways, Recruit, Nidec, Maruwa, Daifuku

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