Haitong International issued a report initiating coverage on XIZHI TECH-P (01879.HK) -12.400 (-3.937%) Short selling $7.96M; Ratio 13.801% with an Outperform rating. Based on XIZHI TECH-P's market positioning in optical interconnect and optical computing, technological accumulation and barriers, as well as its scarcity value as the first AI optoelectronic computing and interconnect stock, the broker adopted a top-down valuation methodology based on total market capitalization.

Referencing the total market capitalization of seven representative A-share optical module/CPO companies and incorporating a 2% penetration rate assumption, the broker estimated the company's target total market capitalization at RMB54.7 billion (approximately HKD62.9 billion), corresponding to a target price of HKD668.

Haitong International said the stock is expected to see frequent near-term catalysts, with focus on WAIC/results/Stock Connect inclusion in Jul/Aug/Sep respectively. For Jul's WAIC, investors are advised to closely monitor progress of the dOCS optical interconnect optical switching super node from the 18th onward, as well as NPO product and technology showcases and CPO technology and solution demonstrations. The broker expects NPO to become a key product within the year, while CPO commercialization within the year will mark a milestone. In Aug, attention should be paid to profit alerts and interim results, particularly customer expansion and new orders. In Sep, the broker believes the company, as a newly listed Hong Kong stock, has potential for inclusion in Southbound Trading, which could attract incremental capital inflows. (ha/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-07-07 16:25.)