Core Insights - The recent China International Optoelectronic Exposition in Shenzhen attracted 5,000 exhibitors showcasing cutting-edge products and technologies, injecting new momentum into the optoelectronic industry and its downstream applications [1] - The core focus of the optical industry is the "high-speed optical interconnection" trend in the data communication market, with three recent catalysts enhancing industry optimism [4] Event Description - The 26th China International Optoelectronic Exposition took place from September 10 to 12, 2025, covering over 300,000 square meters and featuring 5,000 exhibitors presenting innovations across the entire value chain from core materials to system solutions [1] Exhibition Highlights - The exhibition featured eight thematic areas, including information communication, precision optics, laser technology, infrared technology, intelligent sensing, optoelectronic innovation, new display technologies, and AR/VR [2] - Key highlights included the display of 400G/800G/1.6T high-speed optical modules and silicon photonic chips in the information communication section, showcasing advancements in data center and high-speed transmission technologies [2] Industry Summit and Discussions - A series of industry conferences were held, focusing on cutting-edge technologies such as communication, optics, lasers, infrared, and quantum technologies, as well as applications in automotive, robotics, AR/VR, and consumer electronics [3] - Forums like the Advanced Photonic Technology Forum and IEEE OGC2025 Light Innovation and Entrepreneurship Forum facilitated discussions on technology routes and market trends, promoting cross-sector collaboration [3] Catalysts Enhancing Industry Outlook - The optical industry is experiencing a clear growth logic, supported by three catalysts: 1. Oracle's revenue reached $3.3 billion, up 55% year-on-year, with a backlog of $455 billion, up 359% [4] 2. North America's top four cloud providers' capital expenditures totaled $95.8 billion in Q2 2025, a 64% increase year-on-year, indicating strong infrastructure investment driven by AI [4] 3. Nvidia's long-term forecast suggests global AI infrastructure spending could reach $3-4 trillion by 2030, providing a positive growth outlook for optical communication [4] Investment Recommendations - Companies to watch include: - CPO: New Yisheng, Zhongji Xuchuang, Tianfu Communication, Cambridge Technology, Huagong Technology [5] - Optical Chips: Shijia Photon, Guangxun Technology, Yuanjie Technology [5] - IoT Modules: Yiyuan Communication, Guanghetong, Meige Intelligent [5] - Optical Fiber and Cables: Changfei Fiber (601869), Hualing Cable (001208), Yongding Co. (600105) [5]

Core Insights - The 26th China International Optoelectronic Expo will be held from September 10 to 12, 2025, in Shenzhen, featuring over 30,000 square meters of exhibition space and attracting 5,000 exhibitors to showcase cutting-edge products and technologies [2][3] - The expo will cover a full innovation chain from core materials and key equipment to system solutions, injecting new momentum into the optoelectronic industry and its downstream applications [2][3] Industry Highlights - The exhibition is organized into eight major thematic areas, including information communication, precision optics, laser technology, infrared technology, smart sensing, optoelectronic innovation, new display technology, and AR/VR [3] - Key highlights include the information communication section focusing on optical communication advancements, showcasing products like 400G/800G/1.6T high-speed optical modules and silicon photonic chips, indicating technological evolution in data centers and high-speed transmission [3] - The precision optics and camera technology section will display optical components, lens modules, coating equipment, and machine vision systems, addressing diverse professional needs [3] - The smart sensing section will present innovations in sensors, including 3D vision systems and LiDAR solutions, with a dedicated interactive area for humanoid robots, emphasizing the synergy between smart equipment and sensing technology [3] Industry Conferences - A series of industry conferences will be held concurrently, focusing on cutting-edge technology clusters in communication, optics, lasers, infrared, and quantum technologies, as well as applications in automotive, robotics, AR/VR, display, smart sensing, consumer electronics, and security [4] - The expo will feature multiple forums, including the Advanced Photonic Technology Forum and the IEEE OGC2025Light Optoelectronic Innovation and Entrepreneurship Forum, covering the entire innovation chain from academia to industry [4] Growth Catalysts - The optical communication sector is expected to grow steadily, supported by three main catalysts: 1. Oracle's stable performance with a revenue of $3.3 billion (up 55% year-on-year) and a backlog of $455 billion (up 359% year-on-year) [6] 2. Increased capital expenditures from major cloud providers, totaling $95.8 billion in Q2 2025 (up 64% year-on-year) [6] 3. Positive long-term guidance from NVIDIA, projecting global AI infrastructure spending to reach $3-4 trillion annually by 2030, indicating a favorable outlook for optical communication and related hardware [6] Investment Recommendations - Companies to watch include: - CPO: NewEase, Zhongji Xuchuang, Tianfu Communication, Cambridge Technology, Huagong Technology [7] - Optical Chips: Shijia Photonics, Guangxun Technology, Yuanjie Technology [7] - IoT Modules: Yiyuan Communication, Guanghetong, Meige Intelligent [7] - Optical Fiber and Cables: Changfei Fiber, Hualing Cable, Yongding Co. [7]

Core Viewpoint - The global data traffic is experiencing explosive growth due to the proliferation of the internet, cloud computing, and streaming services, leading to increased demand for bandwidth in data center interconnections. Traditional Ethernet connection technologies are struggling to meet this demand, while Wavelength Division Multiplexing (WDM) technology offers an effective solution. The market for WDM devices, particularly wavelength division multiplexers, is expected to grow significantly, reaching $4.85 billion in 2024 and projected to increase to $6.6 billion by 2029 [1][8]. Wavelength Division Multiplexer Industry Overview - Wavelength Division Multiplexers (WDM) are critical optical components in fiber optic communication systems, allowing multiple wavelengths of light to be transmitted simultaneously over a single fiber, thus enhancing transmission capacity and reducing costs [3][4]. - The WDM technology includes Coarse Wavelength Division Multiplexing (CWDM) and Dense Wavelength Division Multiplexing (DWDM), which are essential for high-capacity data transmission in metropolitan area networks [4][5]. Industry Chain of Wavelength Division Multiplexers - The industry chain consists of upstream suppliers of raw materials and core components, midstream manufacturers producing WDM devices, and downstream applications in telecommunications, data centers, and metropolitan networks [6]. - The demand for WDM technology is driven by the increasing need for high-speed and reliable internet connections, particularly with the rise of mobile devices and the expansion of 5G and IoT technologies [6][7]. Market Size and Growth - The global WDM market is projected to reach $4.85 billion in 2024, with a growth forecast to $6.6 billion by 2029, reflecting the increasing data traffic demands [1][8]. - In China, the WDM market is expected to reach 1.67 billion yuan in 2024, with a year-on-year increase of 7.8% [9]. Competitive Landscape - The Chinese WDM market is primarily dominated by domestic companies such as Huawei and ZTE, which are enhancing their market share through technological innovation and expansion. International players like Ciena and Cisco are also active in the market, particularly in high-end segments [9][10]. Industry Development Trends - The industry is moving towards higher density and larger capacity solutions, enabling more wavelength channels to be transmitted over a single fiber, thus improving efficiency [13]. - There is a focus on reducing energy consumption and costs through advanced manufacturing processes and smart energy-saving technologies [14]. - The application of WDM technology is expanding beyond traditional telecommunications into emerging markets such as industrial automation and smart homes, increasing demand for reliable and secure communication networks [15].

Core Viewpoint - The article highlights that Jiangsu Hengtong Optic-Electric Co., Ltd., a subsidiary of Hengtong Group, won the prestigious China Quality Award for its innovative "Four Full and Two-Sided" quality management model, marking it as the only award-winning enterprise in its industry this year [1][5]. Group 1 - The China Quality Award is the highest honor in the quality field in China, aimed at recognizing organizations and individuals that have made significant innovations in quality management models, methods, and systems [5]. - Hengtong Group's Chairman, Cui Genliang, emphasized that the award represents both honor and responsibility, and the company will use it as a new starting point to continue innovating in quality management [4][6]. - Hengtong has established a quality strategy focused on "independent research and innovation, controllable supply chains, creating value for customers, and ensuring national marine communication safety" [6][7]. Group 2 - The "Four Full and Two-Sided" quality management model is a culmination of Hengtong's years of practical exploration in quality management, driving the company towards high-end, intelligent, and green upgrades [7]. - Hengtong has implemented a "Digital Navigation" plan to promote digitalized quality management throughout its processes, establishing itself as a leader in smart manufacturing within the optical communication industry [7]. - This award marks a new height for Hengtong in quality management, following nominations in the second and third editions of the China Quality Award [7].

Investment Rating - The industry investment rating is "Overweight (Maintain)" [1] Core Viewpoints - The report highlights the ongoing growth and technological advancements in the optical communication sector, driven by key catalysts such as increased capital expenditure from cloud service providers and strong performance from major tech companies [6][8] - The recent China International Optoelectronic Exposition showcased significant innovations across various fields, emphasizing the importance of optical communication and related technologies [4][5] Summary by Sections Industry Overview - The communication industry is experiencing a robust growth trajectory, particularly in the optical communication segment, which is expected to outperform the market benchmark [1][6] Recent Events - The 26th China International Optoelectronic Exposition took place from September 10 to 12, 2025, featuring over 5,000 exhibitors and showcasing cutting-edge products and technologies across eight major thematic areas [3][4] Market Trends - Key trends include the focus on high-speed optical interconnects, with significant products like 400G/800G/1.6T optical modules being highlighted at the expo [4] - The report identifies three main catalysts enhancing industry sentiment: Oracle's strong performance, increased capital expenditures from North American cloud providers, and positive long-term forecasts from Nvidia regarding AI infrastructure spending [6] Investment Recommendations - The report suggests monitoring specific companies within the optical communication space, including CPO manufacturers and optical chip producers, as well as IoT module and fiber optic cable companies [8]

Core Viewpoint - Jiangsu Hengtong Optic-Electric Co., Ltd. won the China Quality Award, marking a significant recognition of its innovative "Four Full and Two Sides" quality management model, which has driven the company's transformation towards high-end, intelligent, and green development [1][3]. Group 1: Quality Management and Innovation - The "Four Full and Two Sides" quality management model is a culmination of years of practice and exploration in quality management, enabling Hengtong to break foreign monopolies and fill domestic gaps in key core technologies [3]. - Hengtong successfully developed China's first independently patented optical fiber preform, ending over 20 years of reliance on imports and significantly reducing the price of optical fibers from nearly 2000 yuan per kilometer to several dozen yuan [3]. - The company has achieved breakthroughs in deep-sea communication technology, addressing three major global challenges and contributing to national initiatives for a strong network and maritime power [3]. Group 2: Business Performance and Future Plans - Hengtong is implementing a "Digital Navigation" plan for comprehensive digital quality management, establishing a lighthouse factory recognized as a global leader in smart manufacturing within the optical communication industry [3]. - The company continues to strengthen its full industry chain ecosystem in the communication sector and has introduced new products like hollow core anti-resonant optical fibers [5]. - In the first half of 2025, Hengtong reported a revenue of 32.049 billion yuan, a year-on-year increase of 20.42%, and a net profit of 1.571 billion yuan, reflecting a growth resilience [5].

Group 1 - The company is actively responding to the national "Technology Empowering Agriculture" strategy by launching the all-weather intelligent laser weeding robot 2.0, targeting the green agricultural equipment market valued at billions [2] - A subsidiary has been established in Harbin, currently in the pilot testing phase, with plans to complete engineering finalization and preparations for mass production by the end of the year, aiming for official mass market launch in 2026 [2] - In the CPO sector, the company has released the second-generation single-wave 400G optical engine and the industry's first 3.2T CPO optical engine, which will further advance the development of 3.2T solutions [2] Group 2 - The company's optical electronic information industry research and innovation park's first phase of the next-generation ultra-high-speed optical module R&D center and production base has commenced production in August, with a planned monthly capacity of 1 million units for data communication optical modules [3] - The overseas production capacity is also being enhanced, with the Thailand factory expected to reach a monthly capacity of 150,000 to 200,000 units by the end of the year, with adjustments based on customer order demands [3] - The company reports significant growth in export business, with overseas equipment and channel partners already shipping bulk quantities of 400G/800G optical modules [3]

Group 1 - The company has successfully completed the construction of its export base, as reported by Hubei Daily on August 21, indicating that a major overseas manufacturer conducted an audit a week prior and is awaiting product delivery [2] - In August, the company delivered several tens of thousands of 800g optical modules overseas, confirming the growth of its export business [2] - The company's overseas market expansion is progressing smoothly, with significant growth in export business during the first half of the year, including bulk shipments of 400G/800G optical modules to overseas equipment and channel partners [2]

格隆汇9月16日丨新易盛(300502.SZ)在互动平台表示，公司主营业务为光模块的研发、生产及销售 ，暂 不涉及光芯片的生产制造领域。 ...

Core Viewpoint - The company, Xinyi Solar Holdings Limited, focuses on the research, production, and sales of optical modules and does not engage in the production of optical chips [1] Summary by Category Company Overview - The main business of the company is the research, production, and sales of optical modules [1] - The company explicitly states that it does not involve itself in the manufacturing of optical chips [1]