HK Stock Market Move | Cig Shanghai(06166) soared more than 14% in trading as Zhongji Innolight expects a significant increase in demand for 1.6T optical modules this year.

In early trading, Cig Shanghai (06166) turned from a decline to a rise by over 14%, with a rise of 11.52% as of the time of publication, reaching 126.8 Hong Kong dollars, with a turnover of 870 million Hong Kong dollars. On the news front, leading optoelectronic module company Zhongji Innolight recently released its first quarter performance, with rapid growth in 1.6T products driving the company's gross margin to continue to increase by 1.6 percentage points to 46.1% on a quarter-on-quarter basis. With the continuous expansion of production capacity for 1.6T products, the gross margin is expected to further improve. Zhongji Innolight expects the demand for 1.6T optical modules in 2026 to increase significantly compared to last year, and 2027 is expected to become a mainstream demand for CSP manufacturers. Cig Shanghai stated on the interactive platform that the company is focusing on high-speed optical modules with silicon photonics technology as the core, and has achieved mass shipments of 800G to key overseas customers and small batch shipments of 1.6T. Huaxin Securities previously pointed out that the demand for 800G and 1.6T optical modules is strong, and the company is continuously expanding production, with production capacity gradually being released at its factories in Jiashan and Malaysia, and pushing for capacity construction at its production base in Mexico. In 2026, the company expects 800G optical modules to continue to be the main delivery force, with a large volume of shipments of 1.6T optical modules expected in the first quarter and showing an upward trend.