HK Stock Market Move | Zhongji Innolight (03308) has seen its share price rise by over 15%. Recently, it received increased holdings from Capital Group. The company is expected to fully enjoy the benefits of silicon photonics technology.

Zhongji Innolight (03308) saw its gains expand by over 15%. As of the time of this report, it was up 15.21%, priced at HKD 1,159, with a trading volume of HKD 3.056 billion. On the news front, the latest data from the Hong Kong Stock Exchange shows that on July 30, The Capital Group Companies, Inc. increased its stake in Zhongji Innolight by 2.757 million shares at a price of HKD 980 per share, totaling approximately HKD 2.702 billion. After the increase, the latest holding amount is 2.757 million shares, representing a stake of 5.06%. Guozheng International believes that the company has achieved mass production of silicon photonic technology and has developed and launched 400G, 800G, and 1.6T silicon optical modules. In the first quarter of 2026, products utilizing silicon photonic technology are expected to account for about 70% of the revenue from the high-speed product line. The transformation of product structure towards higher speeds and silicon photonics is an important support for the companys gross margin to increase from 31.6% to 41.5% from 2023 to 2025. Goldman Sachs research report indicates that the global optical module market is projected to reach USD 50.9 billion by 2026, with products of 800G and above expected to grow at a compound annual growth rate of 31%. The network specification upgrades of Nvidia's GB200/GB300 and the subsequent Rubin series chips will continue to drive demand for 1.6T and 3.2T optical modules. The firm believes that Zhongji Innolight, as an industry leader with a 21.2% global market share, is well-positioned to fully enjoy the industry dividends, thanks to its R&D reserves, supply chain stability, and customer loyalty.