Group 1 - The core viewpoint of the article highlights the rise in stock prices of optical communication concept stocks in the US market, indicating positive market sentiment in this sector [1] Group 2 - Lumentum's stock increased by over 4%, reflecting strong investor interest and confidence in the company's performance [1] - Coherent's stock rose by more than 3%, suggesting a favorable outlook for the company's future growth [1] - Astera Labs experienced a stock increase of over 2%, indicating a positive trend in the optical communication industry [1]

Summary of Conference Call Notes Industry and Companies Involved - **Industry**: Communications Equipment - **Companies Covered**: - Accelink Technologies (002281.SZ) - Eoptolink Technology (300502.SZ) - EverProX Technologies (300548.SZ) - GDS Holdings (GDS.O) - Innolight (300308.SZ) - Suzhou TFC Optical Communication (300394.SZ) - T&S Communications (300570.SZ) - VNET Group (VNET.O) - ZTE (0763.HK) Key Points and Arguments EverProX Technologies (300548.SZ) - Target price raised to Rmb122 from Rmb63, reflecting a 46.5x 2026E EPS valuation, which is +1 standard deviation above the 5-year historical mean due to stronger earnings growth projected at a 152% 3-year CAGR [2][11] - 2025/26/27E earnings increased by 1%/26%/45% driven by robust overseas demand for MPO/AOC components, datacenter cables, and optical transceivers [2][11] - Rated as Neutral due to high current trading P/E of ~45x compared to T&S Communications at ~32x, indicating less upside potential [2][11] Suzhou TFC Optical Communication (300394.SZ) - Target price increased to Rmb222 from Rmb196, with 2026/27E earnings raised by 36%/56% due to anticipated growth in the 1.6T light engine market [3][15] - Maintained Buy rating, citing strong long-term earnings growth potential from CPO/OIO total addressable market opportunities and expected sales of FAU, ELSFP, and MT products [3][15] ZTE (0763.HK) - Downgraded to Neutral from Buy, with target price raised to HK$29.20 from HK$27.50 [4][19] - 2025/26/27E earnings reduced by 16%/14%/11% due to margin impacts from a ramping server business and memory price effects on the smartphone segment, partially offset by tighter operating expenses [4][19] - Valuation set at 15.0x 2026E P/E, which is 1.5 standard deviations above the stock's historical average, supported by positive sentiment towards AI server developments [4][19] Accelink Technologies (002281.SZ) - Coverage transferred with a maintained Sell rating and target price of Rmb24.60 [8][20] Eoptolink Technology (300502.SZ) - Coverage transferred with a maintained Buy rating and target price of Rmb472.00 [9][21] GDS Holdings (GDS.O) - Coverage transferred with a maintained Buy rating and target price of US$51.20 [12] Innolight (300308.SZ) - Coverage transferred with rating suspended [13] T&S Communications (300570.SZ) - Coverage transferred with a maintained Buy rating and target price of Rmb137.00 [16] VNET Group (VNET.O) - Coverage transferred with a maintained Buy rating and target price of US$20.00 [17] Other Important Information - The report indicates potential conflicts of interest due to the firm's business relationships with covered companies, advising investors to consider this report as one of several factors in their investment decisions [5] - The report is not for distribution in the People's Republic of China, excluding Hong Kong and Qualified Foreign Institutional Investors [5]

Core Viewpoint - Corning Incorporated (NYSE:GLW) is recognized as a strong growth stock, with positive sentiment from Wall Street ahead of its fiscal Q4 2025 earnings report expected on January 28 [1] Group 1: Analyst Ratings and Price Targets - J.P. Morgan reiterated a buy rating on Corning without disclosing a price target [1] - Morgan Stanley raised the price target from $82 to $98 while maintaining a Hold rating, indicating a positive outlook on the stock due to the expansion of AI trades benefiting infrastructure stocks [2] Group 2: Financial Expectations - Wall Street anticipates Corning to report a revenue of approximately $4.35 billion for Q4 2025, with a GAAP EPS of $0.62 [3] - Management also expects Q4 revenue to be around $4.35 billion, with core EPS projected between $0.68 and $0.72 [3] Group 3: Business Segments - Corning operates in various sectors including optical communications, display technologies, environmental technologies, specialty materials, and life sciences [3]

Core Insights - The article discusses the challenges and innovations in large-scale AI computing centers, particularly focusing on the need for high-density optical connections to enhance data transmission efficiency [1][3][6]. Group 1: Industry Challenges - Large-scale computing clusters consume power equivalent to a medium-sized city and face engineering challenges in managing extensive cabling within limited physical space [1]. - The complexity of wiring increases exponentially as the number of accelerator cards grows, necessitating advanced high-density wiring solutions [1][3]. - The transition from Scale-out to Scale-up architectures in data centers highlights the need for efficient interconnections between GPUs within a single cabinet [8]. Group 2: Technological Innovations - Corning is expanding its optical communication factory in Shanghai to introduce high-density optical connection technology tailored for AI computing centers [6][16]. - The company aims to reduce the physical size of fibers and connectors, thereby freeing up valuable physical space in crowded computing clusters [6][10]. - Corning's SMF-28Contour fiber reduces the outer diameter from 250 microns to 190 microns, allowing for nearly double the connection capacity in the same cable space [9]. Group 3: Market Dynamics - The demand for high-density connections is becoming a necessity for cloud vendors building large-scale AI computing centers, shifting from a "nice-to-have" to a "must-have" [15]. - The rapid growth of AI model parameters has transformed the internal connection requirements of data centers, necessitating advanced solutions [8][14]. - Corning's local manufacturing capabilities enable faster response times and customized solutions for clients, enhancing operational efficiency [30][32]. Group 4: Local Manufacturing and Workforce - Corning's factory in Shanghai represents a significant investment in local high-end manufacturing capabilities, contributing to the development of skilled labor in the region [39]. - The production process relies heavily on skilled workers due to the customized and non-standard nature of optical connector products [19][27]. - The company's commitment to local production supports rapid delivery and co-design capabilities, crucial for meeting the fast-paced demands of AI data center projects [30][32]. Group 5: Future Outlook - Corning is positioning itself to address future challenges in long-distance data transmission with multicore fiber technology, which aims to increase transmission capacity [40]. - The company is also exploring the potential of co-packaged optics (CPO) technology to further reduce power consumption and latency [40][41]. - Corning's evolution from product introduction to ecosystem cultivation in China reflects its strategic approach to maintaining a competitive edge in the rapidly evolving digital infrastructure market [42][44].

Core Viewpoint - The U.S. optical communications sector experienced a broad decline on Wednesday, with notable drops in stock prices for several companies [1] Group 1: Company Performance - Lumentum (LITE.US) saw a decline of over 5% [1] - Astera Labs (ALAB.US) experienced a drop of more than 3.5% [1] - Credo Technology (CRDO.US) fell by over 2.7% [1]

Core Viewpoint - The optical communication industry is undergoing a transformation from "quantitative change" to "qualitative change," with Silicon Photonics emerging as the key solution for computing interconnects in the AI era [1] Group 1: Market Dynamics - The Silicon Photonics market revenue is projected to surge from $1.4 billion in 2023 to $10.3 billion by 2029, with a CAGR of 45% [4] - Traditional optical modules face challenges such as the "power wall" and "size wall" when reaching 1.6T rates, while Silicon Photonics can reduce component size by approximately 30% and power consumption by about 40% [6] Group 2: Value Chain Restructuring - The value chain in the optical module industry is being violently restructured, with core profits shifting from upstream optoelectronic chips to midstream PIC design [1][7] - Companies with independent PIC design capabilities will transition from mere "assembly factories" to technology firms with core chip design capabilities, significantly enhancing their profit levels and influence in the global supply chain [11] Group 3: Key Players and Beneficiaries - Leading companies in the Silicon Photonics chip and module sector include Zhongji Xuchuang and Xinyi Sheng, which have established strong barriers in PIC design and packaging capabilities [14] - Supporting components and solutions, such as those from Tianfu Communication, are crucial in the Silicon Photonics supply chain, benefiting from increased integration levels [15] - CW light sources are essential for Silicon Photonics, with companies like Yuanjie Technology and Shijia Photonics positioned to gain from the demand for external light sources [15]

Core Viewpoint - The article highlights the exceptional performance of Yongying Technology Smart A Fund, managed by Ren Jie, which achieved a cumulative annual return of 239.78% as of December 30, 2025, surpassing the previous record held by Wang Yawei for 17 years [1][3][5]. Performance Metrics - As of December 30, 2025, Yongying Technology Smart A Fund recorded a maximum drawdown of 27.04% and an annualized volatility of 47.42% [3]. - In comparison, the average return of equity mixed funds during the same period was approximately 33%, with an average maximum drawdown of about 15% and an average annualized volatility of around 23% [5]. Fund Growth and Strategy - The fund was established on October 30, 2024, with an initial size of approximately 1.03179 million yuan, of which about 98% was subscribed by Yongying Fund and company employees. By the end of the third quarter of 2025, its size surged to 11.521 billion yuan, marking over a thousand-fold growth [5][6]. - Ren Jie made a pivotal decision in the second quarter of 2025 to shift the fund's holdings towards the overseas computing power industry chain, particularly focusing on key segments like optical communication modules and PCBs, which significantly contributed to the fund's performance [6][8]. Investment Framework - Ren Jie employs a systematic investment framework characterized by "research-driven, focus on change, and flexible response," emphasizing deep industry research and the importance of tracking changes in the market [10][11]. - The investment strategy is based on capturing both "performance changes" through high-frequency data and "valuation changes" driven by market dynamics, aiming for a dual impact on performance and valuation [11]. Market Challenges and Future Outlook - The fund faces challenges related to extreme concentration, high volatility, and limited capacity, especially as the market transitions from expectation-driven trading to profit verification in 2026 [15]. - The article discusses the phenomenon of "champion curse," where funds with extreme high returns often experience significant drawdowns in subsequent years, suggesting that the current success may not be easily replicable [12][15].

Group 1 - Corning Incorporated (NYSE:GLW) has seen its stock price increase by over 70% in the past 6 months, with analysts projecting an additional upside of 11.09% over the next 12 months [1] - Morgan Stanley analyst Meta Marshall has reiterated a Hold rating on Corning and raised the price target from $82 to $98, indicating a potential upside of 9.41% from the current level [2] - Corning is expected to report fiscal Q4 2025 results on January 28, with anticipated revenue of approximately $4.35 billion, an increase from $4.27 billion in fiscal Q3 2025 [3] Group 2 - Corning operates in several sectors including optical communications, display technologies, environmental technologies, specialty materials, and life sciences [4]

Core Insights - The article presents the "Top 10 Core Assets for 2026" as voted by millions of members from over 70 countries, highlighting the collective wisdom of global investors in navigating market uncertainties [2][5]. Summary by Categories Core Assets - The selected core assets include: - **Zhongji Xuchuang (中际旭创)**: Market cap of 6,778 million RMB, focusing on AI and advanced manufacturing [3] - **Tencent (腾讯)**: Market cap of 49,160 million RMB, centered on AI applications [3] - **Alibaba (阿里巴巴)**: Market cap of 24,500 million RMB, involved in AI and cloud computing [3] - **Gold ETF (黄金ETF)**: Market cap of 1 million RMB, categorized under precious metals [3] - **Luoyang Molybdenum (洛阳钼业)**: Market cap of 4,279 million RMB, with no specific industry listed [3] - **China Ping An (中国平安)**: Market cap of 12,400 million RMB, in the financial sector [3] - **Dongfang Caifu (东方财富)**: Market cap of 3,663 million RMB, with no specific industry listed [3] - **Wanhua Chemical (万华化学)**: Market cap of 2,400 million RMB, in the chemical industry [3] - **WuXi AppTec (药明合联)**: Market cap of 1,515 million RMB, in the pharmaceutical sector [3] - **Trip.com Group (携程集团)**: Market cap of 3,250 million RMB, in consumer discretionary [3] Market Context - The investment landscape in China for 2025 is characterized by uncertainties, including fluctuating recovery expectations, geopolitical tensions, and evolving trends in real estate and AI [4]. - The article emphasizes the importance of collective intelligence in investment decisions, asserting that the aggregated insights from millions can effectively guide investors through market complexities [5][7]. Performance Metrics - From 2019 to 2025, the "Top 10 Core Assets Index" achieved a cumulative growth of 318.67%, significantly outperforming the CSI 300 Index (+56.2%) and the Hang Seng Index (-0.82%) [11]. - In 2025, the equal-weighted return of the top assets reached 35.1%, again surpassing the performance of major indices [11]. Selection Criteria - The selected companies must meet four key principles: 1. Represent Chinese enterprises with a domestic market focus 2. Align with future economic directions and create long-term value 3. Possess competitive advantages or potential in emerging sectors 4. Have a projected market cap growth of 20% or more in 2026 [10] Individual Company Insights - **Zhongji Xuchuang**: Expected to benefit from a surge in AI-related demand, with a projected market cap growth of 25%-30% [12]. - **Tencent**: Anticipated to see a 25%-30% increase in adjusted net profit, driven by its strong domestic user base and advertising revenue [13]. - **Alibaba**: Forecasted to achieve a 25%-28% stock price increase, supported by its dual focus on AI and consumer markets [14]. - **Gold ETF**: Positioned as a key hedging tool, with a projected 28%-32% growth in fund inflows [15]. - **Luoyang Molybdenum**: Expected to maintain its leading position in the battery materials sector, with a projected net profit of 320-350 million RMB [16]. - **China Ping An**: Anticipated to grow its market cap by 20%-25%, benefiting from the domestic financial market's recovery [17]. - **Dongfang Caifu**: Projected to see a 22%-28% increase in market cap, driven by the growth in wealth management services [18]. - **Wanhua Chemical**: Expected to achieve a net profit of 155-162 million RMB, supported by domestic demand [19]. - **WuXi AppTec**: Positioned as a leader in the ADC field, with significant growth driven by domestic innovation [20]. - **Trip.com Group**: Forecasted to grow revenue by over 25%, capitalizing on the recovery of domestic travel [21]. Conclusion - The selected core assets reflect a strategic alignment with China's economic growth and key sectors, including AI, renewable energy, finance, and healthcare, emphasizing their potential for long-term value creation [22].

Market Overview - On December 31, the last trading day of 2025 for A-shares, the Shanghai Composite Index experienced slight fluctuations, while the ChiNext Index fell over 1% [1] - By midday, the Shanghai Composite Index decreased by 0.07%, the Shenzhen Component Index fell by 0.67%, and the ChiNext Index dropped by 1.1% [1] - The total market turnover for the half-day was 1.32 trillion yuan, an increase of 21 billion yuan compared to the previous trading day, with over 3,000 stocks declining [1] Sector Performance - The AI application sector saw significant gains, with stocks like Wanshili (301066), Desheng Technology (002908), and BlueFocus (300058) hitting the daily limit [4] - The commercial aerospace concept remained active, with stocks such as Reco Defense (002413) achieving three consecutive limit-ups, and others like Shunhao Co. (002565) and Beidou Star (002151) also reaching the limit [4] - The robotics sector showed localized activity, with Fenglong Co. (002931) achieving six consecutive limit-ups and Wuzhou Xinchun (603667) hitting a historical high with three consecutive limit-ups [4] - According to Kaiyuan Securities, leading domestic humanoid robot companies are expected to achieve IPOs in the first half of 2026, laying a solid foundation for mass production [4] - Guotai Junan Securities believes that as leading overseas humanoid robot manufacturers accelerate product iterations, domestic manufacturers will benefit from the accelerated application domestically [4] Notable Stock Movements - The stock of Hengdong Light (920045.BJ), a "small giant" in the optical communication field, debuted on the Beijing Stock Exchange with an opening increase of 1008%, reaching a price of 350 yuan per share [6] - By midday, Hengdong Light's stock price was 322 yuan, with a narrowed increase of 919.31% [6] - Investors who subscribed to the stock at the issue price of 31.59 yuan per share could see a profit of 31,841 yuan for a single lot of 100 shares [6] IPO Performance - The performance of Hengdong Light reflects a broader trend in the Beijing Stock Exchange, where 26 new stocks were listed in 2025, achieving a perfect record with no stocks breaking below their issue price [8] - The lowest first-day increase among these new stocks was 133%, while the highest reached 1211%, with 19 stocks seeing first-day increases exceeding 200% [8]