The optical fiber concept has rapidly strengthened, with Tongding Interconnection hitting the limit up twice in three days, while Yangtze Optical Fibre and Cable Joint Stock Limited Company, Zhongtian Technology, and Hengtong Optic-Electric also saw gains.
On the news front, according to CCTV Finance, optical fibers and cables, as important mediums for modern information transmission, are widely used in data communication, sensing, medical, and industrial control fields. Since the beginning of this year, the optical fiber industry has shown a prosperous trend of &#34;simultaneous increase in product quantity and price.&#34;
A staff member from an optical fiber production company in Jiangsu told reporters that in the first quarter of this year, the production and sales volume of optical fiber products increased by more than 35% year-on-year, with overseas sales growth exceeding 55%.
Sun Wei, R&amp;D Director of Jiangsu Hengtong Optical Fiber Technology Co., Ltd.: Exports are mainly aimed at North America and Southeast Asia. We currently have a sufficient backlog of orders, with production scheduled into the first quarter of next year.
During interviews, reporters found that many optical fiber production companies this year have seen simultaneous increases in both quantity and price. In another optical fiber production company in Jiangsu, the person in charge told reporters that the production and sales volume of optical fibers in the first quarter increased nearly fivefold year-on-year, while product prices also saw significant increases.
Shen Xiaoping, Chairman of Jiangsu Tongding Group Co., Ltd.: The price has exploded, G.657.A2 optical fiber was 32 yuan (per core kilometer) last year, and now it has risen to 240 yuan (per core kilometer), so the increase is 650%. Previously, payment was made after the goods were shipped, but now buyers pay in advance, and we ship without worrying about sales.
Peng Chuyu, Manager of the Optical Fiber R&amp;D Department at FiberHome Communications: Conventional data centers, for example, those with less than 10,000 ports in the past two years, might only use a few thousand kilometers of optical fiber. Now, with the increase in computing power of data centers, the demand for optical fiber may have increased by 5 to 10 times.
China Galaxy stated that the demand for the optical fiber and cable industry has grown significantly, and industry prices have been raised sharply: operators' bulk purchases have repeatedly faced failed bids and price increases, with some product bidding limits rising by as much as 100% within two months. The increase in bidding unit prices reflects the widespread situation of significant price increases in the optical fiber and cable market; at the same time, this bidding is for emergency procurement projects, which tend to be short-cycle, and combined with previously paused bidding due to project changes, may indicate that the shortage of optical fibers and cables has become quite common.
Guosheng Securities pointed out that this round of market activity started with marginal changes on the demand side, with AIDC and drones jointly driving the increase in optical fiber demand. The significant increase in the density of optical fiber usage due to AI has led to its main applications in AI data centers, including in-rack interconnection, inter-rack interconnection, and DCI scenarios. At the same time, military drones have become an underestimated emerging consumption market. Optical fibers are indispensable in drone anti-jamming guidance and communication, with high consumption per unit and non-recoverable tasks, transforming them from infrastructure into consumables.
The price changes of optical fibers and cables are a &#34;supply-demand gap type&#34; increase following changes in demand structure. With the rising demand for drones and AIDC optical fibers, there is a shortage of high-specification optical fiber production capacity. In the context of supply not meeting demand, customers are insensitive to price, leading to this steep price increase curve. Additionally, leading manufacturers prioritize switching limited production capacity to high-value-added optical fibers, which has resulted in a crowding-out effect on ordinary optical fibers (G.652.D) used in traditional broadband and other fields. Furthermore, with the emergence of various agents, the usage of tokens has rapidly expanded, which is expected to further drive traditional telecom traffic demand, thereby boosting the demand and prices for traditional optical fibers and cables
From the supply side, the global optical fiber and cable industry is entering a new cycle defined by &#34;rigid supply.&#34; Currently, global production capacity is highly concentrated in China (accounting for over 60%), the United States, and Japan, with overseas capacity expansion being extremely restrained, leading to a long-term scarcity of new supply. The absolute &#34;hard constraint&#34; on the supply side lies in the optical fiber preform (preform) segment, which has an expansion cycle of 18-24 months and a very high technical threshold, directly locking in the supply ceiling for the entire industry.
With rigid supply constraints and cautious expansion strategies for optical fibers and cables, a supply-demand gap has emerged. This cycle is primarily driven by emerging demand, with the demand for drones and AI continuing to rise, while manufacturers' expansion strategies remain cautious. Given that the expansion cycle for optical fiber preforms lasts 1.5 to 2 years, assuming that second-tier manufacturers resume production and core manufacturers expand, new capacity will only be released after mid-2027. Based on an annual supply of 500-600 million core kilometers, we estimate that the supply-demand gap will be 6% in 2026 and will further widen to 15% in 2027.
The optical fiber and cable industry has clearly entered a new upward cycle driven by AI. The core characteristics of this cycle are the &#34;structural changes in demand&#34; and the &#34;rigid constraints on supply&#34; colliding deeply. It is recommended to focus on leading companies in the optical fiber and cable sector, such as YOFC (6869.HK), YOFC, HTGD, Zhongtian Technology, and FiberHome.
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The optical fiber industry is experiencing an upturn, with both product volume and price rising. Companies such as Tongding Interconnection and Yangtze Optical Fibre and Cable Joint Stock Limited Company have seen their stock prices increase. The production and sales volume of optical fiber products has grown by over 35% year-on-year, with overseas sales growth exceeding 55%. Jiangsu Hengtong Optic-Electric Co., Ltd. stated that orders are sufficient, with production scheduled through the first quarter of next year. Optical fiber prices have surged significantly, with the price of G.657.A2 optical fiber rising from 32 yuan to 240 yuan, an increase of 650%. Industry demand has grown significantly, with the bidding limit for some products rising to 100% within two months

腾讯新闻 - 财经

YOFC

HTGD

TDii

Guotai CSI All Share Communications Equipment ETF

Fullgoal CSI Communication Equipment Thematic ETF

FiberHome

GUOSHENG SECURITIES

Optical fiber products see both volume and price increase, optical fiber concept rapidly strengthens