CITIC Securities: Continuously optimistic about investment opportunities in the fiber optic cable industry.

The CITIC Securities research report pointed out that since the third quarter of 2025, fiber optic prices in the Chinese market have continued to rise, reflecting good demand and overall tight supply. Overseas demand is strong, with strong export performance, reflecting robust demand in the global fiber optic cable market. We expect that the demand for fiber optics brought by AI will continue to grow rapidly. Firstly, global demand for optical modules is expected to increase significantly in 2026, corresponding to an increase in demand for fiber optics; secondly, it is expected that the scale-up demand for fiber optics will start in 2027; thirdly, Data Center Interconnect (DCI) will also bring a large amount of demand. Currently, the fiber optic cable industry has shifted from recovery to a stage of "tight supply and rising prices". As a capital-intensive industry, we expect that it will be challenging to add new capacity in the short term, so prices are expected to continue to rise, and we continue to recommend the fiber optic cable sector.