You want to replace your CD player with an "inexpensive" 5 disk player.
If you use the optical out to utilize the DAC in the HK you face this
LIMITATIONS
The receiver does not control the data rate, so it must avoid bit slip by synchronising its conversion with the source clock. This means that S/PDIF cannot fully decouple the final signal from influence by the analogue characteristics of the source or the interconnect, even though the digital audio data can normally be transmitted without loss. The source clock may carry inherent jitter or wander, and noise or distortion introduced in the data cable may further influence the process of clock recovery.[5][6][7] If the DAC does not have a stable clock reference then noise will be introduced into the resulting analogue signal. However, receivers can implement various strategies which limit this influence.[7][8]
TOSLINK cables do not work well (and may even suffer permanent damage) if tightly bent or squashed by, say, a misplaced foot. Their high light-signal attenuation limits their effective range to 6.1 metres (20 ft) or so.[citation needed] On the other hand, TOSLINK cables are not susceptible to ground loops and RF interference, as coaxial cables are.[9]
S/PDIF lacks flow control and retransmission facilities, which limits its utility in data communications applications
If you analog out to the HK then you rely on the DAC in the CD play which really doesn't amount to much.
Now..If you do this
Get your CD player
Digital out to a DAC (that handles Toslink in - but will cost a few $100)
Analog out of DAC to the HK, then you have something.
Otherwise...not going to be very impressive either way on the original setup