Advanced Fiber Resources Zhuhai Ltd

On August 28, A-share CPO concept stocks opened lower and moved higher. Star-Net Ruijie, Hefei Metalforming Intelligent Manufacturing, and Qingshan Paper hit limit up, while Shenzhen Microgate Technology, Shengyi Electronics, Optowide Technologies, and Advanced Fiber Resources followed higher. On the news front, the Shanghai Municipal Science and Technology Commission released the 2026 application guidelines for the new-generation optical communications technology project under the Intelligent Computing Optical Network program. Approved projects will receive 40 percent of fiscal funding at launch, another 40 percent after completing milestone targets, and the final 20 percent after meeting all assessment indicators. Overseas, Nvidia reported second-quarter results for fiscal 2027, with revenue of 96.2 billion dollars, up 106 percent year on year, and data center revenue of 89 billion dollars. It also guided to a midpoint of 108 billion dollars in revenue for the third fiscal quarter and raised its fiscal 2028 revenue growth forecast to 70 percent. After the earnings release, Nvidia shares jumped 8.7 percent, giving it a market value of 5.49 trillion dollars, and more than ten investment banks including Morgan Stanley and Citigroup raised their price targets. On the technology side, Nvidia's Spectrum-X Ethernet photonic switching platform has entered full mass production, marking CPO's move into large-scale manufacturing. LightCounting forecasts that global Ethernet optical module sales will grow 73 percent year on year in 2026. Brokerage analysts believe the industry's prosperity has medium- to long-term support, with the four major overseas cloud providers guiding to capital expenditure of 720 billion to 745 billion dollars in 2026.

On August 4, the communication equipment sector rose 3.76% intraday. Xintian Technology gained 20.04%, Guangku Technology rose 11.84%, Tianfu Communication advanced 10.03%, Shijia Technology climbed 10.01%, and Tongyu Communication added 9.41%. In news, Nvidia has shipped its next-generation Spectrum-X CPO switches to select partners, while Broadcom continues small-volume shipments of its 51.2T Bailly CPO switch, marking the official entry of co-packaged optics into mass production. According to CCTV Finance, in the first half of this year, China's exports of laser transceiver modules and integrated circuits used in optical communication equipment for AI computing power construction rose 22.3% and 88.7% year-on-year respectively. Exports of domestically produced intelligent bionic robots have surpassed 10,000 units, and exports of domestically made intelligent handling robots and welding robots each grew more than 60%. Data from market research firm LightCounting shows that the global optical module market exceeded 15 billion US dollars in 2024 and is expected to surpass 20 billion US dollars in 2025. AI data center optical modules account for over 60% of the market, 800G optical module shipments rose more than 300% year-on-year, and 1.6T optical modules have begun small-batch deliveries. Chinese optical module manufacturers held approximately 45% of the global market share in 2024. Optical chips, a core upstream component, account for about 30% to 50% of optical module costs. Domestic manufacturers still rely on imports for high-speed optical chips at 25G and above, but the domestic substitution process is expected to accelerate.