HK Stock Market Move | Zhongji Innolight (03308) rose over 5% after JPMorgan Chase increased its holdings again, with the optical communication giant's earnings guidance surpassing expectations.

Zhongji Innolight (03308) rose over 5%, currently up 5.1% at HK$1,071, with a transaction volume of HK$441 million. On the news front, the latest information from the Hong Kong Stock Exchange shows that JPMorgan increased its holding of Zhongji Innolight H shares by 362,700 shares on August 6. After this increase, JPMorgan's shareholding ratio in Zhongji Innolight H shares rose to 15.60%. Although Zhongji Innolight recently experienced a pullback, foreign capital continues to increase its positions. Additionally, Lumentum, a Micron Communications supplier, has provided guidance for the first quarter of fiscal year 2027 that is significantly better than expected. The company expects first-quarter revenue to be between $1.23 billion and $1.28 billion, with the midpoint of the guidance range exceeding market expectations by more than 8%; the adjusted EPS is expected to be between $4.05 and $4.35, with the midpoint of the guidance exceeding market expectations by over 16%. It is worth mentioning that on July 28, during a conference call, Zhongji Innolight stated that in response to market rumors of a significant decline in prices for 1.6T optical modules, its ASP for 1.6T is far higher than market rumors, and there is no vicious competition in the industry. Currently, overall industry demand is very strong, raw materials are in short supply, and the delivery of 1.6T is tight, with only a few manufacturers possessing the capability for large-scale delivery of 1.6T. The company's product pricing is competitive, allowing for stable gross margin levels.