Hong Kong Stock Market Concept Tracking | Price Surges by 650%! Fiber optic industry welcomes surge in both volume and price, high prosperity may continue until the end of 2027 (Attached concept stocks)

Since the beginning of this year, the domestic optical fiber industry has shown a rare prosperity with both quantity and price rising. Prices of some types of optical fibers have surged by 650% compared to the same period last year, with the production and sales volume of leading companies increasing several times year-on-year, and backlogs of orders extending to the first quarter of next year. According to reports, the price of G.657.A2 optical fibers has soared from 32 yuan per core kilometer to 240 yuan, an increase of 650% compared to last year. The mainstream G.652.D single-mode optical fibers have also experienced rapid price increases. According to CRU data, the price of this type of fiber has risen from less than 20 yuan per core kilometer in early 2025 to 83.4 yuan per core kilometer in March 2026, with a cumulative increase of over 400%. While prices have surged, the production and sales volume of optical fibers has also exploded. Jiangsu Hongtong Optical Fiber Technology Co., Ltd. saw a growth of over 35% in the production and sales volume of optical fiber products in the first quarter, with overseas sales growing by over 55%, mainly targeting North America and Southeast Asia. Hongtong stated, "Currently, our backlog of orders is very substantial, and production schedule is already planned out until the first quarter of next year." Another Jiangsu optical fiber company, Tongding Group, saw a nearly 5-fold increase in production and sales volume in the first quarter. Analysts believe that the core reason for the current price surge is not only the surge in demand but also the rigid bottleneck in the supply chain. The core barrier of optical fibers lies in the upstream optical fiber preforms, with an expansion cycle of 1.5-2 years, high technological barriers, large investment scale, and a large number of small and medium-sized manufacturers being cleared out during the industry's low tide, leading to cautious expansion by leading manufacturers, resulting in a severe global shortage of supply capacity. Looking at the current supply and demand situation, the high prosperity of the industry is expected to continue at least until the end of 2027. On the demand side, the development of AI computing power is still in its early stages, and there is a long-term and continuous demand for the construction of global data centers and the upgrading of overseas communication infrastructure. On the supply side, the expansion cycle of optical fiber preforms is long, and the fastest new capacity expansion by leading manufacturers may not happen until 2027, with overseas giants clearly stating no plans for expansion before 2028, making the current supply-demand imbalance difficult to reverse in the short term. The surge in optical fiber prices has driven the soaring trend of related stocks. In the Hong Kong stock market, YOFC (06869) rose by over 333% in 2025, and has risen by nearly 300% since the beginning of this year. TRANSTECH (09963) rose by nearly 220% in 2025, and has risen by nearly 400% since the beginning of this year. Open Source Securities stated that AI taking over telecommunications demand has led the global optical fiber market into a cycle of rising quantity and price. According to CRU's forecast, global demand for optical fibers will climb to 880 million core kilometers by 2027. The trend of rising optical fiber prices has spread globally, with similar products in the European market also increasing by 136% month-on-month and 159% year-on-year in January, with the supply-demand gap expected to expand to 15% between 2026 and 2027. Great Wall Fund believes that in 2026, the optical fiber industry will enter a strong cycle driven by the three-fold resonance of AI computing power demand explosion, supply rigidity constraints, and price reversal. The sector is transitioning from cyclical stocks to cyclical growth stocks, with the entire optical communication industry chain having high certainty investment opportunities throughout the year. Focus is placed on the optical fiber preforms, high-end optical fibers, and optical chip module sectors, while also being cautious of risks such as AI deployment falling short of expectations. Related concept stocks: YOFC (06869): The global leader in optical fibers, ranking first in global optical fiber sales for nine consecutive years, with a global market share of 13%. It is the only company in the world that masters the three mainstream optical bar preparation processes of PCVD/OVD/VAD, constructing a full industry chain barrier of "bar-fiber-cable," with a self-sufficiency rate of 100% for optical bars and the highest production capacity globally. The company's annual optical fiber production capacity exceeds 60 million core kilometers and is a core supplier for domestic carriers' centralized procurement. In the G.654.E ultra-low loss high-end optical fiber market, the company's market share is as high as 80%-90%, benefiting greatly from the explosion of demand for high-end optical fibers in AI computing power. TRANSTECH (09963): On April 13, the company announced its plans to acquire Hao Min Investment Holding Co., Ltd., with a consideration of approximately RMB 78 million. As of the announcement date, the target company indirectly owns a 51% stake in Hangzhou Company (mainly engaged in the production and sale of optical fiber preforms and optical fibers in China), with its products supplied to independent customers and TRANSTECH's controlling shareholder, Futong China, with optical fibers being a key material for downstream optical cable production. TIME INTERCON (01729): The company is a core supplier for Google MPO in the domestic market, with promising mid- to long-term growth potential driven by AI computing, automotive, and medical industries. Looking ahead, the high growth in demand for AI computing is expected to help drive continuous growth in the company's MPO, server, and high-speed copper cable businesses. Industrial states that the company's core customer base is tied to overseas top cloud providers, with optical interconnection products such as MPO high-density optical fiber solutions being the main source of income, having already solidified its position in the North American major customer supply chain and planning to continuously strengthen its supply chain advantages in the future.