GUOTAI HAITONG SECURITIES·2026-02-05 06:29Investment Rating - The report assigns an "Overweight" rating to the fiber optic cable industry [1]. Core Insights - The fiber optic industry is experiencing a significant price increase trend, driven by a surge in demand due to computational power competition and the growth of special and multimode fibers. The export performance of fiber optic cables is strong, confirming the industry's upward pricing trend [3][4]. Summary by Sections 1. Fiber Optic Industry Cycle and Price Trends - After being under pressure in the first half of last year, the price of fiber optic cables has been gradually recovering, particularly with increased demand for G657A2 overseas, leading to a reduction in G652D supply and longer delivery times. The price of G652D fiber has seen significant increases, with expectations for continued price hikes as major telecom operators prepare for procurement [8][9]. 2. Factors Driving Price Increases - The demand for fiber optic cables is continuously growing, with G652D fiber experiencing a structural shortage. Prices have risen significantly, with the latest market quotes reaching 30-40 yuan per core kilometer, reflecting a more than 50% increase over the previous year [16][22]. - The competition for computational power is a core driver of fiber demand, with data centers requiring significantly more fiber than traditional setups. The global demand for fiber optic cables is expected to increase by 75.9% in 2025, particularly for high-end products like G.654.E and OM5 multimode fibers [20][22]. - The supply side is constrained, with a slow growth in global fiber preform capacity and a shift towards high-demand AI and specialty fibers, leading to a more orderly supply of traditional products [30]. 3. Export Performance and Growth Opportunities - The export of fiber optic cables has become a crucial growth point for companies in the industry, with significant increases in overseas demand. In 2025, the total export volume of fiber optic products reached 454,000 tons, a year-on-year increase of 11.1%, with export value rising by 44.1% [12][10]. 4. Investment Recommendations - The report recommends investing in leading domestic fiber optic manufacturers such as Yangtze Optical Fibre and Cable Joint Stock Limited Company, Hengtong Optic-Electric Co., Ltd., and Zhongtian Technology Co., Ltd., which are expected to benefit from the price increase trend and growing demand [51].