HK Stock Market Move | Supply-demand mismatch drives a sharp rise in optical fiber prices; TRIGIANT (01300) gains nearly 9%, YOFC (06869) rises over 4%.

Optical fiber concept stocks rose in early trading. As of press time, TRIGIANT (01300) gained 8.81% to HK$3.83; YOFC (06869) rose 4.2% to HK$198.5. On the news front, a recent ten-year long-term contract signed between Corning and Verizon, combined with a nearly 90% increase in the unit price of China Mobile Limited's centralized procurement, further confirms that the supply-demand landscape of the optical fiber industry is reversing. EB SECURITIES pointed out that the supply-demand mismatch is driving optical fiber prices sharply higher. As of the end of March, G.652.D rose 400%, and G.657.A2 rose 600%; in April, the global optical fiber price index climbed to 107.2, with optical fiber prices continuing to run at high levels. On the evening of September 13, TRIGIANT announced that its indirectly wholly-owned subsidiary had successfully won the bid for 100% equity of Qinghai Zhongli Optical Fiber Technology Co., Ltd., with a transaction consideration of RMB 455 million. The target company is the only high-tech enterprise in western China integrating the R&D and production of optical fiber preforms and optical fibers. It possesses complete sets of American ASI commercial OVD axial deposition equipment and national-level specialized and sophisticated "little giant" qualifications, and its products have obtained certifications from the three major operators and CTTL.