HK Stock Market Move | Optical communication concept stocks collectively surged, with Lumentum's performance significantly exceeding expectations. Institutions indicate that the national localized industrial chain is entering a new cycle.

The concept stocks of optical communication have collectively strengthened. As of the time of writing, CREALIGHTS (01191) rose by 10.01% to HKD 91.25; XIZHI TECH-P (01879) increased by 8.65% to HKD 351.8; YOFC (06869) climbed by 7.77% to HKD 131.7; Zhongji Innolight (03308) went up by 7.46% to HKD 1095; Cig Shanghai (06166) rose by 6.97% to HKD 87.5; TIME INTERCON (01729) increased by 6.22% to HKD 16.39. On the news front, U.S. optical communication leader Lumentum (LITE.US) released its financial report after the market close on August 11, with Q4 revenue growing by 109% year-on-year to USD 1.01 billion and adjusted EPS soaring by 267% year-on-year. Meanwhile, Lumentum's guidance for the first fiscal quarter of fiscal year 2027 is significantly stronger than expected. Notably, Lumentum CEO Michael Hurlston clearly stated that the supply and demand for core optical devices is extremely imbalanced, with shipments of pump lasers increasing by over 80% year-on-year, and they will remain completely sold out in the foreseeable future. Guotai Haitong stated that the performance guidance of U.S. optical communication companies strengthens the fundamentals, and they are optimistic about the turning point in communications. AI-driven network upgrades, robust overseas demand, and domestic core companies are fully benefiting from the global infrastructure wave, while the nationwide localization supply chain is entering a new cycle. New connections are expected to reach an industry development inflection point in 2026. Kinetic Securities believes that the sustainability of trends in the optical communication industry primarily hinges on the capital expenditure expectations of the four major cloud providers in North America and the progress of commercialization downstream. At the same time, domestic optical chip companies are also experiencing a comprehensive acceleration phase from verification to mass production and from samples to orders. The industry's progress is expected to continue accelerating. Kinetic Securities reiterates the certainty of the upturn in the optical communication sector and recommends paying close attention to the optical communication industry chain.