HK Stock Market Move | Leading concept stocks in optical communications have risen. Zhongji Innolight clarifies rumors of single jumps in CSP. Capital expenditures for CSP in North America continue to show strong growth momentum.

Concept stocks in the optical communication sector led the gains. As of the time of writing, Hongteng Precision (06088) rose by 10.49% to 6.32 Hong Kong dollars; YOFC (06869) rose by 9.95% to 118.2 Hong Kong dollars; TIME INTERCON (01729) rose by 7.3% to 18.51 Hong Kong dollars; Cig Shanghai (06166) rose by 2.91% to 70.75 Hong Kong dollars. On the news front, on February 11, there were rumors in the market that overseas CSP large customers are trying out a new supply chain model, bypassing optical module assembly factories and ordering directly from upstream optical chip manufacturers such as Lumentum, and then subcontracting to designated module factories by the chip manufacturers. The news caused a slump in the optical module sector. Zhongji Innolight came out to refute the claim that CSP customers are placing orders directly with the company, and there is no bypassing of intermediary layers. According to a research report by China Securities Co., Ltd., four North American CSP manufacturers released their fourth quarter financial results for 2025, with strong capital expenditures growth. They also expressed the view on conference calls that there is a high demand for AI and a shortage of computing power. Amazon, Google, and Meta are optimistic about their capital expenditure guidance for 2026, exceeding market expectations. China Securities Co., Ltd. believes that we are still in the early stages of AI development, and it is a trend for the industry to have advanced computing infrastructure. They continue to be optimistic about the overseas AI computing power chain.