CITIC Securities: Lumentum's guidance is positive, continue to recommend the optical communication sector.

CICC's research report pointed out that Lumentum's CEO stated that the company expects to lock in the full-year capacity for 2028 within the next six months. Amazon CEO Andy Jassy revealed in the annual shareholder letter that the commercial returns on the company's AI layout are accelerating across the board. The AI computing power industry chain continues to be highly prosperous. The optical fiber sector experienced some adjustments on Friday, with concerns in the market about delays and pricing pressures in operator group purchases, as well as concerns about the price of G657A2 optical fiber. CICC believes that based on China's optical fiber export data for February, around 80% or even higher of the domestic monthly output of optical fiber has already been exported, leading to a significant decrease in the proportion of purchases by operators compared to the past. The results of group purchases by Guangdong Telecom and Guangxi Telecom have been announced, with the winning bid price for G.652D-24 core optical cable falling between 102.1 yuan and 103.5 yuan per core kilometer, with the fiber optic price estimated to be around 70 yuan per core kilometer. The winning bid price has increased by over 250% compared to China Mobile's winning bid price from last year's group purchase. Additionally, feedback from the industry indicates that the price of 657A2 optical fiber leaving the factory is stable. With the possibility of sector first-quarter reports being released soon, combined with recent large increases, some adjustments have occurred, but the prosperity of the fiber optic cable industry is still there, and adjustments may present opportunities. It is still advised to remain optimistic.