Understanding the Market | TIME INTERCON rises over 12% again as the recovery pace of the optical communication industry accelerates; MPO business is the company's core profit source
TIME INTERCON rose over 12% again, as of the time of writing, up 11.62%, reported at HKD 17.68, with a transaction volume of HKD 629 million. Guosheng Securities' research report indicates that the optical communication industry is entering a new rhythm, with substantial demand driven by the explosion of AI computing power, leading to an earlier-than-expected warming trend that typically begins in the second quarter of each year. The market is now showing signs of recovery, with the pace of recovery advancing and stock prices rebounding. The core driving force behind this change comes from the continuous addition of orders from overseas manufacturers, with expanding demand for computing power and frequent positive news. Previously, China Merchants Securities released a research report stating that the acceleration of AI computing power construction, compared to traditional single-core connectors, MPO has advantages such as saving wiring space and optimizing wiring complexity, aligning with the upgrade trend of AI data centers. The MPO business is the company's core profit source, leading in technology, with 16-core MPO already forming bulk shipments, positioning itself in the overseas cloud supplier chain, being a major supplier for the Google system. The demand for the company's MPO products is strong, and its profitability is far above the company's average level. Under the continuous expansion of major customers, overseas capacity construction, and the trend of technological iteration, we judge that the MPO business will grow rapidly in the coming years without worry
According to Zhitong Finance APP, TIME INTERCON (01729) has risen over 12% again, as of the time of writing, up 11.62%, priced at HKD 17.68, with a transaction volume of HKD 629 million.
Guosheng Securities' research report indicates that the optical communication industry is entering a new rhythm, with substantial demand driven by the explosion of AI computing power, leading to an earlier-than-expected warming trend that typically begins in the second quarter of each year. The market is already showing signs of recovery, with the pace of recovery advancing and stock prices rebounding. The core driving force behind this change comes from the continuous addition of orders from overseas manufacturers, with the demand for computing power continuously expanding and frequent positive news.
China Merchants Securities previously released a research report stating that the acceleration of AI computing power construction, compared to traditional single-core connectors, MPO has advantages such as saving wiring space and optimizing wiring complexity, aligning with the upgrade trend of AI data centers. The MPO business is the company's core profit source, leading in technology, with 16-core MPO already forming bulk shipments, positioning itself in the overseas cloud supplier chain, being a major supplier for the Google system. The demand for the company's MPO products is strong, and its profitability is far above the company's average level. Under the trend of continuous expansion of major customers, overseas capacity construction, and technological iteration, we judge that the MPO business will grow rapidly in the coming years without worry
