Goldman Sachs has resumed coverage of InnoLight Technology's A-shares and initiated coverage of its H-shares with a "Buy" rating, anticipating net profits for this year and next to significantly exceed market expectations, driving a substantial increase in its stock price.

Goldman Sachs initiated coverage of InnoLight Technology's A-shares with a "Buy" rating in a research report published on September 7, while also initiating coverage of its H-shares, driving a significant surge in the company's stock price. Goldman Sachs set a 12-month target price of RMB 2,645 for A-shares, implying an upside of approximately 225%, and HKD 3,267 for H-shares, implying a similar gain. Following this, InnoLight Technology's A-shares rose over 10% intraday, pushing its total market capitalization to RMB 1.06 trillion, while its H-shares surged over 16% at one point.

Goldman Sachs' core rationale is the accelerated mass production of 1.6T and higher optical module solutions, projecting a compound annual growth rate of 78% for the company's revenue from 2026 to 2028. The firm also noted that its net profit forecasts for 2026 and 2027 are 25% and 42% higher than market consensus, respectively. Additionally, the company's recently disclosed share repurchase plan of RMB 4 billion to RMB 8 billion has further bolstered market confidence.