OCC Latest Report

Performance of This Quarter's Financial Report

Optical Cable (stock code: OCC) achieved a total operating revenue of RMB194,855,650 in October 31, 2024, up 12.5% from RMB173,291,630 in October 31, 2023. This growth indicates significant progress in the company's revenue generation, possibly reflecting increased market demand or enhanced competitiveness of its products.

Key Data in the Financial Report

1. The 12.5% YoY growth in total operating revenue demonstrates a strong performance in the market, especially in the context of accelerated 5G and high-speed internet construction.

2. In the first three quarters of 2024, OCC achieved revenue of RMB729 million, up 34.77% YoY, and RMB280 million in Q3, up 32.74% YoY.

3. The rapid increase in the volume of new products and the improvement in cost control are the main factors driving revenue growth, especially the increased demand for 400G/800G products from downstream data communication customers.

4. The overall positive trend in the industry provides a good external environment for the company's growth.

5. OCC's products cover multiple fields and maintain a certain sensitivity to the rapid changes in industry demand.

Peer Comparison

1. Industry-wide analysis: The fiber optic communication industry has been growing steadily in recent years, especially in the context of increasing global demand for high-speed internet, with most companies in the industry achieving revenue growth. According to industry reports, the fiber optic market is expected to continue to expand in the coming years, driving revenue growth for related companies.

2. Peer evaluation analysis: OCC's revenue growth rate of 12.5% is outstanding in the industry. Many of its competitors had revenue growth rates below 10% in the same period, indicating that OCC may have stronger competitive advantages in the market.

Summary

OCC achieved significant revenue growth in 2024, reflecting its strong market position and product competitiveness in the fiber optic communication field. The launch of new products, sensitivity to market demand, and effective marketing strategies have all contributed to this growth. Overall, OCC's performance in the industry is better than most of its peers, showing its good development potential.

Opportunities

1. With the acceleration of 5G and high-speed internet construction, OCC can continue to expand its market share, especially in the promotion of new product lines.

2. The continued growth in the demand for optical modules provides OCC with opportunities to further enhance its revenue.

3. The company's ability to manufacture AWG chips will become more apparent with economies of scale, which is expected to further reduce costs and improve profitability.

4. The industry's concentration improvement is conducive to OCC gaining greater market influence through market integration.

5. The launch of new products will further meet market demand for high-performance products, driving revenue growth.

Risks

1. Intensified industry competition may affect OCC's market share and pricing power.

2. Fluctuations in market demand may lead to uncertainties in revenue, especially in the context of changes in the global economic situation.

3. The risk of dependence on specific customer groups, such as changes in downstream data communication customers' demand, will directly affect the company's performance.

4. Uncertainties in the R&D and market promotion of new products may lead to increased investment costs and delayed benefits.

5. Fluctuations in raw material prices may affect production costs and thus affect the company's profitability.