Zhong You Securities: First awarded Trina Solar with a "buy" rating, indium phosphide epitaxy and EML product yield levels leading domestically

China Post Securities research report pointed out that San'an Optoelectronics is building a full-speed optical chip matrix, with 400G/800G/1.6T progressing synchronously. Currently, the company's optical technology production capacity is 2,750 pieces per month, and the core process segment has been expanded to 6,000 pieces per month. Indium phosphide epitaxy and EML product yield levels are leading domestically and continuously improving. They are also laying out 6/8 inch silicon carbide production capacity, with products covering a full range of devices. In terms of products, the company has built a matrix of silicon carbide diodes and MOSFET products with full voltage, full current, and total on-resistance. The products have achieved comprehensive breakthroughs in six major areas including new energy vehicles, photovoltaic energy storage, charging piles, data centers/AI server power, appliances, and low-altitude aircraft, covering top customers in various domestic and international tracks, and achieving scale landing from sample verification to stable mass production and supply. In addition, the company's RF business focuses on GaAs and GaN RF chips, being one of the few domestic manufacturers capable of large-scale production. The products are used in 5G/6G base stations, satellite communications, mobile terminals, etc., deeply tied to domestic and international core customers, serving as an important growth curve for the company. It is estimated that the company's revenue in 2025/2026/2027 will be 18.24/21.74/25.74 billion yuan respectively, and the net profit attributable to the parent company will be -0.24/0.45/0.98 billion yuan. The first coverage gives a "buy" rating.