Goldman Sachs China AI Field Trip: Changguang Huaxin (688048) Chairman Meeting Notes
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Goldman Sachs hosted the chairman of Changguang Huaxin (688048.SS, Not Covered) at its China AI field trip in Suzhou on September 7. The IDM makes high-power laser chips across GaAs, GaN and InP and is expanding from industrial uses into automotive and AI data-center optical networking. Management expressed optimism on optical-networking end demand, ongoing customer penetration and capacity ramping. Combined monthly capacity for EML and CW lasers is guided to rise by a triple-digit percentage in 3Q26 versus 1H26, with another triple-digit increase in 4Q26 versus 3Q26; the company makes its own InP epiwafers, front-end equipment is pre-locked, and back-end capacity can double within roughly three months. For 2027E, capacity will tilt toward EML (100G and 200G, with 100G the majority). 100G EML is in mass production; 200G EML is slated to ramp in 2027E, hinging on customers' migration to 1.6T optical modules. CW lasers are mainly 70mW/100mW with 400mW in development, and 100G VCSEL has shipped; blind-spot lidar for smart driving is a key 2027E automotive driver. Goldman reiterated its positive optical-networking view and cited Buy-rated RoboTechnik, Innolight (A/H), Eoptolink, LandMark, VPEC, FOCI, Largan and Luxshare (A/H).