Hong Kong stock concept tracking | Global optical module market maintains high growth rate, industry chain companies start a new round of performance valuation growth cycle (with concept stocks)

According to LightCounting's latest forecast in March, the global optical module market is expected to maintain a 60% growth rate in 2026, with the global market size estimated to reach nearly 60 billion US dollars by 2031. Automation equipment is essential for mass production of optical modules, and with the introduction of new technologies such as 3.2T, CPO, and silicon photonics, a future increase in both quantity and price is anticipated. Huatai Research Report stated that AI development is driving the accelerated iteration of optical modules, with the current 1.6T optical modules in the commercial deployment stage, and new generation products like 3.2T in the early technology preparation stage, expected to begin verification around 2027-2028. CITIC SEC pointed out that AI computing clusters are transitioning from "simply stacking computing power" to "network efficiency competition", which will pose more comprehensive and stringent requirements for AI interconnection solutions. XPO, as a new generation pluggable optical module solution jointly launched by Arista and over 60 partners, with 8 times the bandwidth, 4 times the front panel density, native liquid cooling, and complete hot-swappable features, successfully breaks through the physical limitations of traditional OSFP. It combines the performance advantages of CPO/NPO with the convenience of pluggable operation and maintenance, providing a more practical upgrade path for AI end-to-end scale up/out/across scenarios. CITIC SEC believes that XPO will significantly expand the application scenarios of pluggable optical modules, driving domestic optical module manufacturers to achieve smooth evolution in core technologies and upgrade to the next generation of optical interconnects, initiating a new cycle of performance valuation growth. XPO related industry chain Hong Kong stocks: Cig Shanghai (06166): The company's optical module product layout is complete, including models such as Retimed 1.6T 2DR4/DR8, 1.6T 2FR4, OSFP DR8, and Gearbox 800G DR4, covering LPO/LRO related models, mainly based on silicon photonics technology. The North American market is one of the company's important business markets, and the company is deeply bound to core customers through the JDM model, while advancing product validation with multiple new customers. The demand for 800G and 1.6T optical modules is strong, and the company is continuously expanding production. The capacity of the Jiaxing and Malaysia factories is gradually being released, and the capacity construction of the production base in Mexico is being promoted. In 2026, the company expects 800G optical modules to remain the main product shipped, and 1.6T optical modules to achieve a large volume of shipments in the first quarter and show an upward trend. With subsequent technological iterations, capacity releases, and customer expansion, the company's performance is expected to continue to improve. FIT HON TENG (06088): AI-driven explosive growth, becoming the first growth pole. In 2026, Cloud Network Infrastructure revenue was 813 million US dollars, a year-on-year increase of +37.6%, mainly driven by AI server upgrades leading to a surge in copper-based parts and new cable connector shipments. The company is extending from data solutions to power solutions, and demand for general server connection products is also increasing. Of note, the company launched a 1.6T high-speed solution and 448G new architecture at DesignCon 2026, received positive feedback from core customers, and is about to showcase the NTT-validated 102.4T CPO (Co-packaged Optics) external laser pluggable platform at OFC 2026. The technical layout closely follows the industry trend towards migration to 448Gbps/1.6T, providing strong momentum for future growth. TIME INTERCON (01729): The company is bound to overseas leading cloud providers in its core customer system, with optical interconnect products such as MPO high-density optical fiber solutions as the primary source of revenue. The company has entered the supply chain of major North American customers and will continue to strengthen its supply chain advantage. In the field of special wire for copper connections, the company is closely following the overall solution promotion of controlling shareholder Luxshare Precision Industry, participating in the introduction of new generation interconnection solutions such as CPC Co-packaged Copper Interconnect in Scale-out architecture, and is expected to continue to benefit from the evolution towards higher-generation high-speed copper connections.