STOCKS | Goldman Sachs Initiates InnoLight Technology H Shares With Buy Rating, HK$3,267 Target

Goldman Sachs initiated coverage of InnoLight Technology's H shares with a Buy rating and a 12-month target price of HK$3,267. According to Sina Finance, the bank said its 2026 and 2027 net profit forecasts are 25% and 42% above market consensus, respectively, citing higher revenue and gross margin assumptions. Analysts including Verena Jeng said the stronger outlook reflects the bank's positive view of InnoLight Technology's leading position in silicon photonics modules, accelerated mass production of 1.6T and above solutions, a stable supply chain and diversified production bases, as well as manageable co-packaged optics competition. Goldman Sachs also said InnoLight Technology's experience serving CSP clients and the AI infrastructure supply chain allows it to adapt earlier than peers to changing demand and product requirements. It reiterated a Buy rating on the A shares and kept the target price at RMB 2,645.