Specialized and Innovative ‘Little Giant’ Jeppter: Policy Benefits, New Energy Expansion, 800G Optical Module Ramp-Up, Performance Enters Accelerated Growth Period

Specialized and Innovative 'Little Giant' Jeppter: Policy Benefits, New Energy Expansion, 800G Optical Module Ramp-Up, Performance Enters Accelerated Growth Period

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Jepter Research and Investment Report

Company Background

As China's first commercial MOPA pulsed fiber laser manufacturer, JEPT occupies a first-mover advantage in the field of laser technology, and its development history and technological breakthroughs are deeply in line with Shenzhen's industrial strategy of "the first city of specialization, refinement, and innovation". The company's core technology system is based on MOPA lasers and ultrafast lasers, and has built a solid patent moat through continuous R&D investment, with a total of 300 patents, covering key areas such as laser source design, beam control, and precision manufacturing, forming a vertical integration capability from core devices to complete systems.

In order to strengthen the technological innovation engine, JEPT has established an international R&D team, set up a R&D center in Shenzhen, and laid out cutting-edge technology laboratories in Singapore to achieve cross-regional technology collaboration and global innovation resource integration. This R&D architecture supports the company's continuous breakthroughs in the field of high-power, high-beam quality laser equipment, and its products have successfully entered Apple's supply chain and the production system of leading power battery manufacturers, becoming a key equipment supplier in the field of consumer electronics precision processing and new energy manufacturing, fully verifying the market recognition and commercialization capabilities of technical solutions.

With the strategic orientation of "technological breakthroughs driving industry upgrading", the company continues to consolidate its technological leading position in the field of laser equipment through the deep binding of R&D investment and patent layout, and provides efficient and precise laser processing solutions for the downstream manufacturing industry.

Main business and market share

JEPT's main business has built three core sectors around laser and optoelectronic technology, forming a product matrix covering high-end manufacturing and optical communications. In the field of laser business, the company's products are mainly used in new energy power battery processing and consumer electronics manufacturing scenarios, among which MOPA pulsed fiber lasers occupy a dominant position in the domestic market with technical advantages, with a market share of more than 70%, and have established the industry position of "hidden champions" in subdivided fields. the intelligent equipment business focuses on semiconductor testing and consumer electronics manufacturing, providing automation solutions for precision manufacturing; the optical fiber device business cuts into the core industry chain of optical communications, forming business synergies.

From the perspective of market competition, JEPT has formed differentiated competition with leading enterprises in the industry such as Han's Laser and Huagong Technology. Although there is a gap with the leading companies in terms of overall revenue scale, it has shown a unique competitive advantage with its business characteristics of high gross profit margin and high growth. According to the data of the third quarter report of 2025, the company's gross profit margin reached 40.58%, which is significantly higher than the industry average, which reflects the core competitiveness of its products in terms of technical added value and market pricing power.

By focusing on high value-added market segments and avoiding head-on competition with comprehensive giants, the company has established irreplaceability in the field of precision machining in strategic emerging industries such as new energy and semiconductors, laying the foundation for sustained growth.

Main Revenue Situation

In 2025, Jeput achieved rapid growth in both revenue and profit. According to the earnings forecast, revenue is expected to reach 1.987-2.152 billion yuan, and net profit attributable to shareholders of the parent company is expected to be 262-309 million yuan, representing year-on-year increases of 97.69%-132.88%, showing a strong growth trend. This growth is mainly attributed to the synergistic driving of new energy power battery processing, consumer laser, and optical communication businesses. The three core business segments are working together, providing solid support for the company's performance growth.

In terms of revenue structure, the optical fiber device business is performing particularly well, with revenue doubling year-on-year, becoming an important engine for the company's revenue growth. It also reflects the company's competitive advantage and market expansion achievements in this specific segment. In terms of profitability, the gross profit margin for the first three quarters reached 40.58%, significantly higher than the industry average of 28%-32%, demonstrating the company's advantages in cost control, product added value, and market bargaining power.

Looking at quarterly data, Q3 revenue reached 628 million yuan, a year-on-year increase of 31.9%; net profit excluding non-recurring items was 108 million yuan, a substantial year-on-year increase of 175.64%, showing a good trend of sequential quarterly performance improvement and further validating the company's continued growth momentum and profitability potential.

Stock situation

JEPT's stock price has recently shown a volatile adjustment trend, closing at 144.12 yuan (-2.56%) on January 28, 2026 and 134.75 yuan (-6.5%) on January 29, with a cumulative decline of 8.94% in two trading days. In terms of capital flow, on January 28, the net inflow of main funds was 9.4395 million yuan, the net inflow of floating capital was 2.8351 million yuan, and the net outflow of retail investors was 12.2746 million yuan, showing that the behavior of professional institutions and retail investors was significantly differentiated.

In terms of institutional ratings, a total of 5 institutions gave ratings, including 3 buys and 2 overweights, and Cathay Haitong Securities gave a target price of 166.40 yuan, which is about 23.5% upside from the current stock price. Valuation indicators show that the company's current rolling price-earnings ratio is 54.93 (industry median 46.94) and dynamic price-earnings ratio is 96.53 (industry median 53.69), both of which are higher than the industry average, reflecting that the market gives a certain premium to its growth, but needs to be wary of valuation digestion risks.

Future prospects

JEPT's future growth will benefit from the coordinated promotion of structural changes in the laser industry and the company's strategic layout. At present, the laser industry is experiencing six major trends, including clearance, price system restructuring and in-depth development of the industry, creating a window of opportunity for enterprises with technical barriers and market card advantages. The company's three core business segments have established differentiated competitiveness and are expected to achieve breakthroughs in subdivided fields.

In the field of optical communications, the company's MPO optical connectors have been shipped in batches through Senko certification and FAU optical modules, two key developments that have made it deeply involved in the high-speed optical interconnection network of AI data centers. With the explosion of global demand for AI computing power and the continuous upgrading of optical module rates within data centers, the company's related products will directly benefit from the volume demand of 400G/800G optical modules. In the field of new energy, power battery laser welding equipment continues to benefit from the expansion cycle of leading battery manufacturers, and the company's technology accumulation in process links such as lug welding and shell sealing is expected to obtain incremental orders in the expansion of industry capacity. The consumer laser business targets emerging markets such as laser engravers and 3D printing, and opens up the second growth curve by expanding application scenarios, and has completed the technical reserve of a number of small and medium-power lasers.

On the whole, 2026 will be a key verification period for the company's strategy implementation, and it is recommended to focus on two core indicators: the progress of order conversion after Senko certification in the field of optical communications, and the increase in the penetration rate of consumer lasers in the engraving machine and 3D printing markets. If the above business achieves growth beyond expectations, the company is expected to achieve a significant increase in market share in the structural adjustment of the laser industry.

Competitors

The global laser equipment and device market presents a clear hierarchical competition pattern. In the high-end market, international giants such as IPG and TRUMPF have formed a monopoly position with decades of technology accumulation, especially in the fields of high-power fiber lasers and precision laser processing systems, and their products have long led the industry in core indicators such as stability and beam quality. This technical barrier makes domestic enterprises still face import dependence in high-end application scenarios (such as aerospace precision manufacturing, semiconductor wafer cutting).

The domestic competition pattern shows a trend of coexistence. From the perspective of revenue scale, the revenue of industry leader Han's Laser in the first three quarters reached 12.7 billion yuan, significantly ahead of JEPT's 1.509 billion yuan, but JEPT showed stronger growth momentum with a revenue growth rate of 41%. It is worth noting that JEPT's gross profit margin of 40.58% is significantly higher than the industry average, reflecting its product competitiveness and profitability advantages in market segments.

In terms of subdivided technical routes, domestic enterprises present a differentiated layout. JEPT is a leader in the field of MOPA (main oscillation power amplification) lasers, which is irreplaceable in precision manufacturing scenarios such as power battery tab cutting and flexible display panel processing. Raycus Laser, on the other hand, focuses on the continuous laser market and occupies advantages in industrial fields such as high-power welding and thick plate cutting. This differentiation of technical paths has enabled JEPT to gradually establish its industry position as an "invisible champion in market segments", especially in the special laser equipment market in the field of consumer electronics and new energy.

From the perspective of competitive barriers, the advantages of international giants lie in patent layout (IPG has more than 5,000 global patents) and supply chain control capabilities, while domestic companies rely on cost control, rapid response capabilities and localized services to form competitive advantages. Through the vertical integration model of "core device complete system", JEPT achieves independent control in key links such as laser light source and optical design, effectively reducing its dependence on external supply chains, which provides support for its continuous breakthroughs in market segments.