HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Ligent Technologies / Equity Capital Markets

<ul>
<li>Ligent’s business model can be summarized as using the "full-stack capability“ as a moat and seizing market share through the "price-for-volume" strategy, which however has led to unsatisfactory profit margin.</li>
<li>The positive side is although optical chip business is losing money, the vertical layout of "optical module + optical chip" still holds strategic value.EML chip helps to turn things around.</li>
<li>Considering weaker profitability of Ligent and liquidity discount in the Hong Kong stock market, valuation would be lower than peers (e.g. a discount of 40% to 50% could be given).</li>
</ul>


Ligent’s business model can be summarized as using the "full-stack capability“ as a moat and seizing market share through the "price-for-volume" strategy, which however has led to unsatisfactory profit margin.
The positive side is although optical chip business is losing money, the vertical layout of "optical module + optical chip" still holds strategic value.EML chip helps to turn things around.
Considering weaker profitability of Ligent and liquidity discount in the Hong Kong stock market, valuation would be lower than peers (e.g. a discount of 40% to 50% could be given).


Pre-IPO Ligent Technologies - About the Business and the Outlook

HK/China Equity Long-Short

Osbert Tang, CFA

Zhongji InnoLight / Equity Capital Markets

<ul>
<li>The IPO of <a href="https://www.smartkarma.com/entities/zhongji-innolight" target="_blank" data-smartkarma-citation="entities:55331:1" rel="noopener">Zhongji InnoLight (3308 HK)</a>, a leading global provider of optical interconnect solutions, which seeks HK$54.5bn, is the largest since 2019.</li>
<li>Its FY25-28F EPS CAGR will reach 89.8%, underpinned by the jump in revenue and expansion in margin. Its 1Q26 net profit has already surged by 262.3%.</li>
<li>The IPO is priced at a 17.7% HA discount. At a HK$1.2trn market capitalisation, pegging it to its A-share will give a price of HK$1,227, or a 21.5% upside.</li>
</ul>


The IPO of Zhongji InnoLight (3308 HK), a leading global provider of optical interconnect solutions, which seeks HK$54.5bn, is the largest since 2019.
Its FY25-28F EPS CAGR will reach 89.8%, underpinned by the jump in revenue and expansion in margin. Its 1Q26 net profit has already surged by 262.3%.
The IPO is priced at a 17.7% HA discount. At a HK$1.2trn market capitalisation, pegging it to its A-share will give a price of HK$1,227, or a 21.5% upside.


Zhongji InnoLight (3308 HK) IPO: Assessing the Valuation

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>Zhongji Innolight launched Hongkong IPO to raise nearly HK$ 55B. They provide optical interconnect solutions that help transmit data through optical fibers and enable high-speed, energy efficient and low-latency connectivity.</li>
<li>Zhongji Innolight intends to use the proceeds for investment in R&amp;D, to expand global production capacity, enhance supply chain &amp; commercialization capabilities, for strategic acquisitions/investments and working capital.</li>
<li>Given the end market demand scenario, the valuation that Zhongji Innolight is seeking through this issue seems relatively justified and reasonable, considering the company’s market leadership position.</li>
</ul>


Zhongji Innolight launched Hongkong IPO to raise nearly HK$ 55B. They provide optical interconnect solutions that help transmit data through optical fibers and enable high-speed, energy efficient and low-latency connectivity.
Zhongji Innolight intends to use the proceeds for investment in R&amp;D, to expand global production capacity, enhance supply chain &amp; commercialization capabilities, for strategic acquisitions/investments and working capital.
Given the end market demand scenario, the valuation that Zhongji Innolight is seeking through this issue seems relatively justified and reasonable, considering the company’s market leadership position.


Zhongji Innolight IPO: Transmitting The Right Vibes For Investors Given The Strong Demand Optics

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zhongji-innolight" target="_blank" data-smartkarma-citation="entities:55331:1" rel="noopener">Zhongji InnoLight (3308 HK)</a>, a leading global provider of optical interconnect solutions, has launched an H Share listing to raise US$7.0 billion.</li>
<li>I discussed the H Share listing in <strong><em><a href="https://www.smartkarma.com/insights/innolight-h-share-listing-the-investment-case" target="_blank" data-smartkarma-citation="insights:247130" rel="noopener">Innolight H Share Listing: The Investment Case</a></em></strong>. </li>
<li>The proposed AH discount of 23.3% (based on the close on 21 July A Share price) is attractive, and I would participate in the H Share listing.</li>
</ul>



Zhongji InnoLight (3308 HK), a leading global provider of optical interconnect solutions, has launched an H Share listing to raise US$7.0 billion.
I discussed the H Share listing in Innolight H Share Listing: The Investment Case. 
The proposed AH discount of 23.3% (based on the close on 21 July A Share price) is attractive, and I would participate in the H Share listing.


Innolight H Share Listing (3308 HK): Valuation Insights

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Zhongji Innolight   / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zhongji-innolight-co-ltd" target="_blank" data-smartkarma-citation="entities:6986:1" rel="noopener">Zhongji Innolight (300308 CH)</a> (ZI), one of the world’s largest optical transceiver manufacturers, aims to raise around US$7bn in its H-share listing.</li>
<li>Innolight was the global leader in 2025 in optical modules, with its products being in high demand for data centers.</li>
<li>We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.</li>
</ul>



Zhongji Innolight (300308 CH) (ZI), one of the world’s largest optical transceiver manufacturers, aims to raise around US$7bn in its H-share listing.
Innolight was the global leader in 2025 in optical modules, with its products being in high demand for data centers.
We have looked at the past performance and likely A/H premium in our previous note. In this note, we talk about the IPO pricing.


Aequitas: Innolight A/H Listing - Decent Pricing, Strong Cornerstone

China

Eoptolink Technology Inc., Ltd.  designs and manufactures communication components.  The Company sells a variety of optical transceiver modules.  Eoptolink Technology sells products around the world.

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Eoptolink Technology (300502 CH)

Pre-IPO Ligent Technologies - About the Business and the Outlook

Ligent's business model relies on "full-stack capability" but struggle with low margins.Strategic value in vertical layout help turnaround, but...

Xinyao (Criss) Wang

Zhongji InnoLight (3308 HK) IPO: Assessing the Valuation

Zhongji InnoLight's IPO seeks HK$54.5bn, with strong growth projections. Priced at a 17.7% HA discount, there is potential for 21.5% upside if we...

Osbert Tang, CFA

Zhongji Innolight IPO: Transmitting The Right Vibes For Investors Given The Strong Demand Optics

Zhongji Innolight launch HK IPO to raise HK$55B for R&D, global expansion, acquisitions, and working capital, with justified valuation reflecting...

Tina Banerjee

Aequitas: Innolight A/H Listing - Decent Pricing, Strong Cornerstone

Zhongji Innolight (300308 CH) (ZI), one of the world’s largest optical transceiver manufacturers, aims to raise around US$7bn in its H-share...

Sumeet Singh

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Pre-IPO Ligent Technologies - About the Business and the Outlook

​Ligent's business model relies on "full-stack capability" but struggle with low margins.Strategic value in vertical layout help turnaround, but...

Xinyao (Criss) Wang

Zhongji InnoLight (3308 HK) IPO: Assessing the Valuation

​Zhongji InnoLight's IPO seeks HK$54.5bn, with strong growth projections. Priced at a 17.7% HA discount, there is potential for 21.5% upside if we...

Osbert Tang, CFA

Zhongji Innolight IPO: Transmitting The Right Vibes For Investors Given The Strong Demand Optics

​Zhongji Innolight launch HK IPO to raise HK$55B for R&D, global expansion, acquisitions, and working capital, with justified valuation reflecting...

Tina Banerjee

Innolight H Share Listing (3308 HK): Valuation Insights

InnoLight, a leading global provider of optical interconnect solutions, has launched an H Share listing to raise US$7.0 billion. In this note, I...

Arun George

Aequitas: Innolight A/H Listing - Decent Pricing, Strong Cornerstone

Zhongji Innolight (300308 CH) (ZI), one of the world’s largest optical transceiver manufacturers, aims to raise around US$7bn in its H-share...

Sumeet Singh

Ligent's business model relies on "full-stack capability" but struggle with low margins.Strategic value in vertical layout help turnaround, but...

Zhongji InnoLight's IPO seeks HK$54.5bn, with strong growth projections. Priced at a 17.7% HA discount, there is potential for 21.5% upside if we...

Zhongji Innolight launch HK IPO to raise HK$55B for R&D, global expansion, acquisitions, and working capital, with justified valuation reflecting...