HK Stock Market Move | TRIGIANT (01300) surged over 8% in early trading; acquisition of Qinghai Zhongli completes its rod-fiber-cable layout, with promising growth potential in AI optical fiber.

TRIGIANT (01300) rose over 8% in early trading. As of press time, it was up 6.91% at HK$3.015, with a turnover of HK$13.6274 million. On the news front, TRIGIANT recently won the bid for 100% equity of Qinghai Zhongli Optical Fiber Technology Co., Ltd. for RMB 455 million. It is reported that Qinghai Zhongli has already put into production an annual capacity of 400 tons of preforms and 5 million core-kilometers of optical fiber. Equipment for the Phase III project with an annual capacity of 600 tons of preforms is already in place but has been suspended due to a funding gap. It can be quickly restarted once capital is injected, and the planned total capacity will reach 1,000 tons of preforms. EB SECURITIES pointed out that upstream optical preforms have become the core bottleneck of the industry chain, and rigid constraints on capacity expansion effectively limit the release of available production capacity. Optical preforms account for about 70% of optical fiber costs, and the capacity expansion cycle generally takes 18-24 months, with the pace of supply release clearly lagging behind demand. If this acquisition is successfully completed, it is expected to fill out the group's "preform-fiber-cable" industry chain layout and open up incremental space for AI computing power-related optical fiber products.