Changes in Hong Kong stocks | Changfei Optical Fiber & Cable (06869) fell by more than 9% in the afternoon, and the expansion of production by optical fiber companies will eliminate the shortage situation in the past two years or peak of profit

The Zhitong Finance App learned that Changfei Optical Fiber Cable (06869) fell more than 9% in the afternoon. As of press release, it was down 8.03% to HK$130.5, with a turnover of HK$3.379 billion.

According to the news, the explosive growth in demand for AI computing power has pushed the optical fiber industry into an upward price channel. The sharp rise in optical fiber prices and the existence of a gap between supply and demand in the industry are driving many companies to launch plans to expand production of optical rods and optical fibers. On the evening of July 10, both Fenghuo Communications and Lingyi Intelligent Manufacturing issued announcements. The former plans to raise no more than 2,913 billion yuan for projects such as intelligent optical fiber manufacturing, while the latter plans to participate in the restructuring of Fortis Jiashan and enter the optical fiber communication circuit.

Jefferies released a research report saying that although AI and geographical conflicts drive demand for optical fiber, the US supply chain is also facing serious shortages, with the drastic expansion of production in China and the world, the increase in supply will gradually eliminate the shortage. Changfei Optical Fiber Cable may face the risk of losing market share, and profits from 2026 to 2027 may be at a cyclical peak. Jefferies downgraded the rating of Changfei Optical Fiber Cable from “buy” to “hold”, but raised the target price from HK$10.73 to HK$153.74.