Core Insights - The demand for AI computing power is rapidly increasing, driving the evolution of core components and packaging technologies in the optical communication industry [1] - The integration of AI and optical communication technologies is a focal point at the 26th China International Optoelectronic Expo, with companies actively responding to advancements in optical modules and Co-Packaged Optics (CPO) technology [1][2] Industry Trends - Major companies in the optical communication sector showcased their innovations at the expo, including products from Guangxun Technology and Luxshare Technology, focusing on CPO and 1.6T optical modules [2] - The global optical module market is expected to experience a structural explosion, reaching a market size of $12.1 billion by 2025, driven by AI computing clusters and supercomputing centers [3] Company Performance - NewEase achieved a revenue of 10.437 billion yuan in the first half of the year, a year-on-year increase of 282.64%, with net profit rising by 355.68% [4] - Zhongji Xuchuang reported a revenue of 14.789 billion yuan, up 36.95% year-on-year, with a net profit increase of 69.40%, driven by the demand for 800G and 1.6T products [4] - Tianfu Communication's revenue reached 2.456 billion yuan, a 57.84% increase year-on-year, with net profit growing by 37.46% [4] Technological Developments - Nazhen Technology reported a 124% year-on-year revenue growth, reaching 4.216 billion yuan, with optical module revenue accounting for 77.9% of total revenue [5] - The industry is witnessing a shift towards higher integration and miniaturization in optical interconnects, with CPO technology expected to penetrate over 20% of AI data centers by 2026 [3] Capacity Challenges - The industry is transitioning from a demand-focused phase to addressing challenges related to timely delivery and production capacity [6] - Companies are facing tight supply of key raw materials, which is impacting inventory management [7] - Guangxun Technology plans to raise up to 3.5 billion yuan for the production of optical connection and high-speed optical transmission products, indicating ongoing investment in capacity expansion [7]

Investment Rating - The report maintains a "Buy" rating for Innolight and Eoptolink, with target prices updated to Rmb569 and Rmb472 respectively [15][26]. Core Insights - The networking sector is viewed positively due to optimistic growth forecasts for ASICs from Broadcom, strong long-term capital expenditure outlooks from Meta/OpenAI, and Oracle's significant datacenter expansion plans, indicating better demand visibility beyond 2026 [2][11]. - Despite a strong year-to-date rally, profit-taking is expected; however, the overall narrative remains compelling with a potential re-rating of transceiver companies to a PE of 20x+ [2][3]. - The report highlights a revision in industry demand estimates for 800G and 1.6T transceivers, projecting shipments of 56.3 million and 19.2 million respectively for FY27, reflecting a 42% year-over-year growth [11][29]. Summary by Sections Industry Outlook - The report emphasizes the longevity of demand in the transceiver market, driven by significant AI investments from major US cloud service providers [11]. - The expected rollout of 3.2T SiPh transceivers in late 2027 is noted as a key development, with 800G and 1.6T remaining dominant solutions in the interim [11][29]. Company Performance - Innolight is expected to secure a higher market share due to its strong R&D capabilities and its role as a key supplier for Oracle, alongside benefiting from the anticipated EML shortage [26][27]. - Eoptolink is projected to gain market share as it capitalizes on its LPO capabilities and the rapid build-out of Oracle's datacenter [15][26]. Financial Estimates - Revenue estimates for FY26 have been revised upwards, with a projected revenue of Rmb46.287 billion, reflecting a 20% increase from previous estimates [19][30]. - Net profit estimates for FY26 have also been increased to Rmb19.535 billion, a 22% rise compared to earlier projections [19][30]. Market Dynamics - The report discusses the competitive landscape, noting that while some tier-2 companies are planning to enter overseas markets, significant progress has yet to be observed [3]. - The potential for a 20-30% penetration of CPO in the market by 2029-2030 is highlighted, although major CSPs have not yet shown signs of mass adoption [3][11].

Core Insights - The global fiber optic connector market is projected to reach approximately $5.56 billion in 2024, reflecting a year-on-year growth of 7.2% driven by increasing demand for high-capacity data transmission and next-generation communication networks [3]. Market Overview - The fiber optic connector is defined as a passive optical device that enables detachable connections between optical fibers, ensuring minimal impact on system performance and reliability [1]. - The small square fiber optic connectors hold a significant market share, accounting for nearly 35% of the global fiber optic connector market [6]. Regional Analysis - North America is identified as the largest demand region for fiber optic connectors, capturing about 31% of the global market share, followed by Europe with a 27% share [8]. Industry Trends - The industry is witnessing a trend towards high-speed and high-density solutions, particularly in the context of 5G and future communication networks, where the demand for fiber optic connectors is expected to surge due to the increasing number of base stations [13]. - The integration of intelligent technology into fiber optic connectors is enhancing their capabilities, allowing for self-monitoring and diagnostics, which is crucial for maintaining communication stability and reliability in complex networks [13].

29 August 2025 | 8:01PM HKT China Weekly Kickstart A-shares rallied 3% while MSCI China lost 1%; We raised CSI300 index target; CPPCC National Committee is drafting the 15th Five-Year Plan CSI300 gained 2.7% on record volumes and outperformed MSCI China (-0.8%). We expect the liquidity-driven rally in A shares to extend and raise our CSI300 12-month index target to 4900. CPPCC National Committee held the 13th session to draft the country's 15th Five-Year Plan. The State Council issued opinions to deepen the ...

Core Viewpoint - The Optical Circuit Switching (OCS) market is experiencing rapid growth driven by AI computing demands and high-performance data center applications, with significant technological advancements in MEMS and silicon photonics [3][4][11]. Current Status of OCS Industry - OCS technology is diversifying, with MEMS technology dominating the high-end market and silicon photonics accelerating commercialization through integration with Co-Packaged Optics (CPO) [3]. - The OCS market is expanding rapidly, primarily due to the needs of AI clusters and high-performance computing, with data centers becoming the core application area [3][4]. - International companies like Coherent, Google, and Calient lead the market, while domestic firms are making significant technological breakthroughs [3][11]. Development Trends of OCS - The industry is shifting towards a photonic-electronic collaborative architecture, enhancing system efficiency and integration [4]. - AI technologies are being integrated into OCS control planes, promoting autonomous and self-optimizing networks [4]. - There is a focus on cost control and developing highly integrated optical switching technologies to meet the demands of large-scale data center networks [4]. Market Size and Forecast - The global OCS market is projected to grow from $72.78 million in 2020 to $366.47 million by 2024, with a CAGR of 49.80% [7]. - By 2031, the market is expected to reach $2,022.21 million, with a CAGR of 17.12% from 2025 to 2031 [7]. - The Chinese market is growing rapidly, with a projected market size of $80.20 million by 2031, capturing 3.97% of the global market [7]. Product Type Analysis - The OCS market is currently dominated by MEMS solutions, which accounted for $192.36 million in 2024, representing 52.49% of the market [8]. - DirectLight DBS solutions are expected to take the lead post-2025, with a projected market size of $1,185.42 million by 2031 [8]. Application Market Overview - Data centers are the largest application market for OCS switches, expected to reach $1,312.29 million by 2031, capturing 64.89% of the market share [9]. Key Manufacturers - Major global manufacturers include Google, Huber+Suhner, Coherent, and Calient, with Google holding a revenue share of approximately 48.53% in 2024 [11].

Core Insights - The report from CITIC Securities indicates that the use of OCS in AI data centers is still in its early stages, with Google having already implemented products while most manufacturers are actively developing their technologies [1] - CITIC Securities believes that the OCS technology route is highly feasible with significant advantages, leading to strong growth certainty in the future [1] - The report outlines three investment themes across the entire industry chain: focusing on manufacturers with core optical communication equipment in the complete machine segment, optical MEMS suppliers and foundries in the core component segment, and domestic optical component suppliers in the optical component segment [1] Investment Opportunities - In the complete machine segment, the market space is expected to exceed $40 billion in the long term, with both specialized OCS manufacturers and traditional optical communication equipment manufacturers being able to undertake AI OCS-related business [3] - In the core component segment, the market space for WSS based on MEMS or LCoS technology is projected to reach several billion dollars, with MEMS currently benefiting mainly foundries due to product immaturity, while LCoS manufacturers may expand into the optical communication field [3] - In the passive component segment, OCS increases the usage of optical isolators, micro-lenses, and beam splitters, with the market space for optical isolators potentially reaching $5 billion and the global competitive landscape being relatively fragmented [3] Technological Developments - The AI era necessitates new networks, with OCS addressing the bottlenecks of Scale out, providing high bandwidth, low latency, and low-cost network solutions compared to previous technologies [2] - OCS technology is expected to penetrate AI clusters further, replacing spine switches, leaf switches, and even taking on inter-card connections and on-chip networks, thereby expanding market opportunities [2] - The demand for AI large models requires a new network architecture characterized by large-scale global data exchange, which is fundamentally different from previous data center network architectures [1]

Core Viewpoint - The optical splitter industry is experiencing significant growth driven by the increasing demand for high bandwidth and transmission rates in the context of emerging technologies such as 5G, IoT, and cloud computing. The market size in China is projected to reach 19 billion yuan in 2024, representing an 18.8% year-on-year increase [1][8]. Group 1: Industry Overview - Optical splitters, also known as splitters, are crucial passive devices in optical communication networks, responsible for dividing one optical signal into multiple signals or combining multiple signals into one [3][8]. - The optical splitter market is expected to grow due to the rising demand for high bandwidth and stable networks, particularly in FTTH applications [7][8]. Group 2: Industry Development - The optical splitter industry in China began in the 1990s, initially focusing on imitating and importing foreign technology. However, it has since evolved, with domestic companies increasing R&D investments and improving product performance [6][8]. - The market demand for optical splitters has surged since 2020, driven by the construction of 5G base stations and the growth of data centers [6][8]. Group 3: Industry Chain - The upstream of the optical splitter industry includes raw materials such as optical materials and precision manufacturing metals, which directly affect the performance and stability of optical splitters [6][8]. - The midstream involves the production and manufacturing of optical splitters, including chip design, manufacturing, packaging, and testing [6][8]. - The downstream consists of application fields such as telecommunications, data centers, and broadband network providers, which demand high performance and reliability from optical splitters [6][8]. Group 4: Competitive Landscape - The optical splitter market is competitive, with both domestic and international companies participating. Notable international players include JDSU, Finisar, and Nichia, while domestic companies like FiberHome and Shijia Photon are also gaining market share [8]. - Domestic companies are narrowing the technology gap with international firms through increased R&D and leveraging cost advantages [8]. Group 5: Future Trends - Technological innovation will continue to drive the performance enhancement of optical splitters, with new materials and advanced manufacturing techniques like nanotechnology and 3D printing expected to play significant roles [14][15]. - The application fields for optical splitters are expanding, particularly in 5G networks, IoT, smart transportation, and smart cities, which will further increase demand [14][15]. - The industry is likely to undergo consolidation, with larger companies acquiring smaller ones to enhance market share and competitiveness [15].

Core Insights - The use of OCS in AI data centers is still in its early stages, with Google having achieved product implementation while most manufacturers are actively developing their technologies [1] - The feasibility of the OCS technology route is considered high, with significant advantages and strong growth certainty in the future [1] Investment Recommendations - For the complete machine segment, it is recommended to focus on manufacturers with core optical communication equipment business and OCS foundries [1] - In the core components segment, attention should be directed towards optical MEMS suppliers and foundries [1] - For the optical components segment, it is advisable to monitor domestic optical component suppliers in China [1]

Core Insights - The report from CITIC Securities emphasizes that demand drives supply, which is a crucial principle in the business world, and the unique demand generated by AI large models presents transformative opportunities for the industry chain [1] Industry Transformation - The use of OCS to build large computing clusters outperforms traditional IB and RoCE technologies in terms of high bandwidth, low latency, and low cost, indicating that this technology route is likely to become mainstream for AI infrastructure in the long term [1] Investment Recommendations - In the complete machine segment, it is recommended to focus on OCS machine manufacturers, foundries, and OTN machine manufacturers [1] - In the core components segment, attention should be given to optical MEMS foundries and LCoS manufacturers [1] - In the optical components sector, it is advisable to monitor markets for optical circulators and micro-ring modulators [1]

今日（8.20），沪指下探回升涨1.04%续创新高，半导体产业链强势爆发。同类规模领先的云计算ETF汇添富（159273）探底回升收涨0.27%！资金面上， 云计算ETF汇添富（159273）盘中净流入超2800万元，连续第5日强势"吸金"，累计净流入超1.7亿元！同类规模、流动性持续领先！ 截至收盘，云计算ETF汇添富（159273）标的指数成分股多数飘红：浪潮信息涨停，曙光信息涨超6%，紫光股份涨超5%，中科曙光涨超4%，星网锐捷、 拓维信息、云赛智联涨超2%。 | 序号 | म्हें से | 名称 | 涨跌幅 ▼ | 估算权重 | | --- | --- | --- | --- | --- | | 1 | 000977 | 浪潮信息 | 10.01% | 3.21% | | 2 | 872808 | 曙光数创 | 6.89% | 0.00% | | 3 | 000938 | 紫米股份 | 5.76% | 2.69% | | 4 | 603019 | 中科曙光 | 4.29% | 5.54% | | ਟੇ | 002396 | 星网锦捷 | 2.87% | 0.83% | | 6 | 002261 | ...