March 30, 2026 01:48 AM GMT Ningbo Orient Wires & Cables | Asia Pacific FY25 Result Beat Reaction to earnings Strengthens our thesis Modest upside Largely unchanged Impact to our thesis Financial results versus consensus Direction of next 12-month consensus EPS Source: Company data, Morgan Stanley Research | P/E | 35.8 | 38.5 | 22.4 | 18.8 | | --- | --- | --- | --- | --- | | P/BV | 5.3 | 5.4 | 4.4 | 3.7 | | RNOA (%) | 22.9 | 23.5 | 36.0 | 40.7 | | ROE (%) | 16.0 | 15.6 | 23.2 | 23.3 | | Div yld (%) | 0.9 | ...

公众号记得加星标⭐️，第一时间看推送不会错过。 每隔几年，行业都会" 宣判 "铜缆的死刑。这一次，光学阵营的胜利似乎已经呼之欲出， CPO横空出世，硅光子如日中天，各大OFC展会上漫天飞舞的都是光纤的故事。 然而在2026年初，市场却迎来了一盆意料之中的冷水。 产业变心 2026 年 3 月 初 ， 博 通 CEO 陈 福 阳 （ Hock Tan ） 在 财 报 说 明 会 上 突 然 表 示 ， 随 着 2028 年 迈 向 400G SerDes，博通的XPU客户很可能仍将继续使用直连铜缆（Direct Attach Copper，DAC）。他强调， 光纤方案成本更高，且需要消耗更多电力。 博通作为CPO领域的领先者，陈福阳却在这个时机亲手给CPO的大规模普及踩了刹车，并以竞争者的 口吻描述自家技术："你没必要非得去追求什么叫CPO的闪亮新玩意儿。即使我们在CPO领域处于领 先地位，CPO也终究会到来。不是今年，也许也不是明年。"这话说得格外耐人寻味，领先者主动压 低自己领先项目的市场预期，那就说明在Scale-up（纵向扩展）场景里，铜缆的物理经济学还没有被 超越。 几乎同一时间，英伟达黄仁勋在202 ...

Core Viewpoint - Australia's Lynas Rare Earths has entered into a partnership with South Korea's LS Eco Energy for the production of rare earth metals, highlighting the strategic importance of rare earths in various high-tech applications [1][2]. Group 1: Partnership Details - LS Eco Energy will obtain rare earth oxides or salts from Lynas and process them into rare earth metals in Vietnam, which will then be used to manufacture permanent rare earth magnets in Virginia, U.S. [2] - The partnership includes a commitment for both companies to negotiate separate definitive deals, with each company cross-subscribing to approximately A$30 million (about $20.84 million) of convertible instruments [3]. Group 2: Industry Significance - Rare earths and the magnets produced from them are essential components in a wide range of devices, including smartphones, washing machines, and military systems like the F-35 jets, as well as in electric vehicles [2]. - Lynas is recognized as the largest rare earth producer outside of China, emphasizing its critical role in the global supply chain for these materials [3].

Summary of Jiangsu Zhongtian Technology (A) Conference Call Company Overview - **Company**: Jiangsu Zhongtian Technology Co., Ltd. (ZTT) - **Sector**: Utilities-Other - **Founded**: 1992, initially focused on optical communications, expanded into smart grid in 2002 and renewables in 2011 - **Global Presence**: 54 offices and 12 marketing centers, exporting to over 160 countries as of 2020 - **Stock Exchange**: Listed on the Shanghai Stock Exchange since 2002 Key Points Industry and Market Dynamics - **Optical Fiber Price Increases**: Optical fiber prices are expected to rise significantly, from RMB 25 per fiber-km in 4Q25 to over RMB 40 in February 2026, with spot prices reaching RMB 60. This is driven by increased demand for data center interconnects and backbone network upgrades [2][15][35] - **Demand Drivers**: The demand for optical fiber is being fueled by AI infrastructure, data center build-outs, and industrial IoT deployments. AI-related demand is projected to grow significantly, with data centers consuming 5-10 times more fiber than conventional setups [26][27][39] - **Supply Constraints**: The optical fiber supply is tight due to high barriers to entry in production, including reliance on high-purity quartz and complex manufacturing processes. This limits the industry's ability to scale supply rapidly [23][24] Financial Performance and Projections - **Earnings Growth**: ZTT expects a compound annual growth rate (CAGR) of approximately 50% in earnings from 2026 to 2027, driven by optical fiber price hikes and increased demand [1] - **Revenue Estimates**: Projected revenues for 2026 are RMB 65.03 billion, with net income expected to reach RMB 5.074 billion, reflecting a 24.6% increase from previous estimates [4][56] - **Gross Margin Improvement**: The gross margin for the optical communications segment is expected to improve to over 30% by 2026, supported by a higher share of specialty fibers and a shift towards spot market pricing [36][38] Business Segments - **Optical Segment**: Anticipated revenue growth of 30% in 2026, with a focus on increasing the share of high-margin specialty fibers [2][36] - **Subsea Segment**: Expected revenue growth of 40% in 2026, driven by offshore engineering recovery and high-margin products [3][48] - **Grid Segment**: Projected revenue growth of 15-20% in 2026, supported by China's investment in smart grid infrastructure [49][52] Valuation and Investment Rationale - **Price Objective**: The price objective has been raised to RMB 35, reflecting a valuation of 19x 2026E PE, which is considered attractive despite a significant year-to-date rally [4][55] - **Investment Rating**: The company is rated as a "Buy," with expectations of benefiting from the growth in cables for renewables and communication [13] Risks and Considerations - **Upside Risks**: Higher-than-expected offshore wind installations, increased overseas demand, and a drop in raw material prices could positively impact the company [68] - **Downside Risks**: Lower-than-expected demand for optical fiber, reliance on state-owned enterprises' investment strategies, and rising trade barriers could negatively affect performance [68] Additional Insights - **Market Position**: ZTT ranks fourth globally in optical cable market share with an 11% share, indicating a strong competitive position [20] - **Future Capacity Expansion**: Plans to double overseas fiber capacity, particularly in Indonesia and Europe, to meet growing international demand [39][46] This summary encapsulates the key insights from the conference call regarding Jiangsu Zhongtian Technology's market position, financial outlook, and strategic initiatives, providing a comprehensive overview for potential investors.

Core Viewpoint - The company is closely monitoring the evolution of downstream technology routes and related product architectures, maintaining close communication with core customers [1] Group 1: Technology and Product Development - Current adjustments in technical solutions are primarily focused on specific application scenarios and localized structures, with copper cable solutions remaining mainstream for medium to short-distance transmission [1] - The overall demand for high-speed communication lines is experiencing rapid growth, driven by the fast expansion of AI technologies [1] - The company has developed a next-generation single-channel 448G high-speed cable, which is designed to better meet the needs of higher-grade terminal products in the future [1] Group 2: Competitive Advantages and Market Outlook - The company's high-speed communication line products possess advantages such as low cost, high reliability, scalable mass production capabilities, and a well-established industrial chain [1] - There is a solid demand foundation and long-term development space for the company's products in the future [1]

Core Insights - The company has achieved significant advancements in the research and industrialization of high-speed copper cable products, establishing a comprehensive technical system and scalable delivery capabilities driven by AI computing demand [1][2] - The company has successfully mass-produced 56G, 112G, and 224G co-extruded products, with a particular emphasis on the 224G physical foaming products, which are now ready for mass production [1] - The company has a variety of mainstream structural design solutions for high-speed copper cables, showcasing its strong technological foresight and continuous innovation capabilities [1] Technical Developments - The company has fully mastered the mass production capabilities for 56G, 112G, and 224G products, with a complete product matrix established [1] - The company has successfully passed certification from major North American clients for its high-speed copper cable products, validating its technical specifications and quality management [2] - The performance and quality of the company's products meet the requirements of global tech giants like NVIDIA, Amazon, Google, and Huawei in AI computing clusters and large-scale data centers [2] Production Capacity and Global Strategy - The company has successfully deployed production lines for 224G foaming equipment, with three lines in Shanghai and two in Mexico, aimed at enhancing global capacity and responsiveness to market demands [1] - The company plans to strengthen its global capacity layout in line with its strategic and refinancing plans [1] - The company is committed to focusing on high-speed transmission and increasing R&D investment while deepening its global supply chain and production capacity layout [2]

Core Viewpoint - The company emphasizes the importance of digitalization and artificial intelligence technologies, recognizing the development opportunities they present [1] Group 1: Business Strategy - The company’s high-speed cables and components meet the stringent requirements for high bandwidth and low latency demanded by data centers and AI computing centers [1] - The company plans to increase investment in research and development for high-speed interconnection and hybrid optical-copper products, while deepening strategic cooperation with key customers [1] Group 2: Market Demand - The company is currently experiencing strong demand for high-speed business orders, indicating a positive operational status [1] - The company will continue to monitor advancements in technology and industry trends, actively responding to customer needs to seize development opportunities [1] Group 3: Future Outlook - The company will disclose specific operational performance in future announcements on the Giant Tide Information Network [1]

Core Viewpoint - Zhaolong Interconnect (300913.SZ) has developed a single-channel 224G high-speed cable product and is currently collaborating with clients in the AI data center sector for validation [1] Group 1 - The company has a single-channel 224G high-speed cable product available [1] - The company is working with clients in the AI data center field to conduct validation [1] - There is currently no collaboration between the company and Woer Nuclear Materials [1]

Summary of Ningbo Orient Wires & Cables Conference Call Company Overview - **Company**: Ningbo Orient Wires & Cables (603606.SS) - **Recent Development**: Secured new cable orders worth Rmb3.125 billion Key Points New Orders Secured - Total new cable orders amount to Rmb3,125 million, representing 34.4% of NBO's projected 2024 revenue and adding 16.0% to its order backlog of Rmb19,551 million as of October 23, 2025 [2][1] - Breakdown of new orders: - Rmb1.9 billion from extra-high voltage subsea cable contracts for power interconnection projects in Asia - Rmb108 million from marine engineering, offshore O&M, and umbilical cable contracts - Rmb162 million from high-voltage land cables - Rmb955 million from low-to-mid-voltage land cable orders from State Grid, China Southern Power Grid, and railway projects [2][1] Earnings Growth Expectations - Anticipated earnings growth for NBO to accelerate in Q4 2025 and 2026, with a projected net profit of Rmb914 million for the first nine months of 2025, a decline of 1.9% year-over-year [1] - Growth driven by the delivery of subsea cable orders secured since Q4 2024, including significant projects like the 500kV AC cables for Fanshi 1 and ±500kV HVDC cables for Qingzhou 5 & 7 [1] Market Opportunities - The European offshore wind market presents new opportunities, particularly following Poland's recent offshore wind auction, which awarded contracts for projects totaling 3.4GW capacity [3][7] - NBO has previously secured subsea cable orders from the 1.5GW Baltica 2 offshore wind farm in Poland, indicating a strong position in the European market [7] Valuation and Investment Recommendation - Target price for NBO shares set at Rmb81.00, indicating a potential upside of 36.8% from the current price of Rmb59.22 [5][8] - Expected total return of 37.9%, including a dividend yield of 1.1% [5] Risks - Key risks include: - Lower-than-expected demand for submarine cables due to reduced offshore wind installations in China - Margin pressures from increased competition among cable manufacturers - Potential international trade restrictions affecting export sales [9] Financial Projections - Earnings summary for NBO: - 2023A: Net Profit Rmb1,000 million, EPS Rmb1.454, P/E 40.7 - 2024A: Net Profit Rmb1,008 million, EPS Rmb1.466, P/E 40.4 - 2025E: Net Profit Rmb1,422 million, EPS Rmb2.068, P/E 28.6 - 2026E: Net Profit Rmb1,883 million, EPS Rmb2.738, P/E 21.6 - 2027E: Net Profit Rmb2,265 million, EPS Rmb3.293, P/E 18.0 [3] Conclusion - NBO is positioned for growth with a strong order backlog and favorable market conditions, particularly in offshore wind projects. However, investors should remain cautious of potential risks that could impact demand and margins. The investment recommendation remains a Buy based on the company's growth prospects and valuation metrics.

Stock Performance - Fujikura's stock has surged approximately 1,400% in the past two years [1] Market Demand - New global data centers have created an insatiable demand for Fujikura's cables [1] - The company is struggling to meet the high demand for its cables [1]