HK Stock Market Move | CIG Shanghai (06166) rose nearly 17% in the afternoon, with a significant increase in the scale of high-speed optical module business. Net profit in the first quarter increased by 276% year-on-year.

Cig Shanghai (06166) rose nearly 17% in the afternoon, up 15.98% at the time of writing, to HK$141.5, with a turnover of HK$516 million. On the news front, Cig Shanghai previously disclosed its first quarter performance, with the company achieving operating income of 1.287 billion yuan, a year-on-year increase of 43.98%; net profit attributable to shareholders of the listed company was 118 million yuan, a significant increase of 276.44% year-on-year. The main driver of the high growth in performance is the significant increase in the scale of the high-speed optical module business, with strong demand for 800G and 1.6T high-speed optical modules in global data centers. Public data shows that currently, global data centers have sustained strong demand for 800G and 1.6T high-speed optical modules, and Cig Shanghai is continuously expanding its production capacity. Its factories in Jiashan and Malaysia are gradually releasing capacity, and the company is actively promoting the construction of production capacity at its production base in Mexico to cope with market delivery pressures. The company expects that 800G optical modules will remain its main delivery force in 2026.