The computing power sector surged, with several CPO concept stocks reporting strong performance for 2025. On February 26, A-shares bottomed out and rebounded throughout the day, with the three major indices showing mixed results. The Shanghai Composite Index edged down 0.01% to close at 4146.63 points, while the Shenzhen Component Index rose 0.19% and the ChiNext Index fell 0.29%. Market turnover reached 2556.639 billion yuan, an increase of 75.747 billion yuan from the previous session.
In market movements, the computing power sector led gains, with PCB, CPO, and liquid cooling server segments collectively strengthening. Stocks including Gaolan Co., Ltd., Jialong Co., Ltd., Shennan Circuits Co., Ltd., and Han's Laser Technology Co., Ltd. hit the daily limit. The power sector also saw significant gains, with Ganneng Co., Ltd., Dongfang Electric Co., Ltd., and Shenma Power Co., Ltd. rising by the limit. On the downside, film and television stocks continued to adjust, with Bona Film Group Co., Ltd. falling by the limit for three consecutive sessions. Gaming, real estate, and precious metals were among the worst-performing sectors.
China Aviation Securities noted that the post-Spring Festival period marks an important policy window, and recent market fluctuations offer favorable opportunities for positioning. Despite external volatility in global asset classes, A-shares may have stabilized ahead of others. While overseas markets could remain volatile, A-shares are expected to gradually transition into an upward trend. In the short term, sector and style rotations may persist, suggesting a balanced allocation strategy.
**Deppon Logistics Co., Ltd. Submits Delisting Application** After market close, Deppon Logistics Co., Ltd. announced its intention to voluntarily withdraw its A-share listing from the Shanghai Stock Exchange via a shareholders' resolution. The company plans to apply for continued trading on the National Equities Exchange and Quotations’ delisting sector. The delisting proposal was approved at the company’s first interim shareholders’ meeting in 2026.
In accordance with regulatory requirements, the company submitted an application to the Shanghai Stock Exchange on February 26, 2026, seeking approval to withdraw its shares from trading. The exchange will determine whether to accept the application. In September 2022, JD Logistics acquired control of Deppon Logistics Co., Ltd. through its subsidiary JD Zhuo Feng, which subsequently gained control of the company. JD Zhuo Feng committed to resolving同业竞争 issues between JD Logistics and Deppon Logistics Co., Ltd. within five years of the acquisition. To better align with logistics industry trends, enhance resource integration within the JD Logistics system, and fulfill commitments regarding同业竞争, the company opted for delisting.
Financial advisor CITIC Securities stated that the voluntary delisting complies with the Shanghai Stock Exchange’s listing rules. The company has disclosed reasons for the move, post-delisting strategies, and arrangements for dissenting shareholders’ cash exit rights, safeguarding investor interests.
**CPO Index Continues to Climb** The CPO index rose 2.41% on February 26, reaching a new historical high. Among index components, Dongshan Precision Manufacturing Co., Ltd. surged 8.01%, while Tianfu Communication Co., Ltd. advanced 6.01%, hitting a record intraday high. Stocks including Ruijie Networks Co., Ltd., Changguang Huaxin Co., Ltd., and Accelink Technologies Co., Ltd. followed with gains exceeding 4%.
The rally followed Nvidia’s latest earnings report. For Q4 FY2026, Nvidia reported revenue of $681.3 billion, surpassing analysts’ estimates of $662 billion, with EPS of $1.62, beating expectations of $1.53. The company’s guidance also exceeded forecasts, projecting Q1 FY2027 revenue of $780 billion, plus or minus 2%. CITIC Securities highlighted that booming AI computing demand is driving upgrades in the optical communication industry. Increased capital expenditure by overseas cloud providers underscores robust demand for AI infrastructure, fueling need for high-speed optical modules. Although supply constraints exist for components like high-speed optical chips, expanded production by upstream firms and adoption of silicon photonics solutions are expected to ease bottlenecks.
**12 CPO Concept Stocks Report 2025 Performance** According to Securities Times·DataBa, 12 CPO concept stocks had released 2025 performance reports as of February 26. Based on preliminary data or forecast medians, Zhongji Innolight Co., Ltd., Eoptolink Technology Inc., Ltd., and Tianfu Communication Co., Ltd. led in net profit at 10.8 billion yuan, 9.65 billion yuan, and 2.015 billion yuan, respectively.
Zhongji Innolight Co., Ltd. projected 2025 net profit attributable to shareholders of 9.8 billion to 11.8 billion yuan, a year-on-year increase of 89.50% to 128.17%. The company attributed growth to strong customer investment in computing infrastructure, rapid shipment increases, and a higher proportion of high-speed optical modules. Improved product solutions and operational efficiency also contributed. The firm noted that key clients began deploying 1.6T technology in 2026, with demand expected to grow significantly. Q1 2026 saw rapid order growth for 1.6T modules, likely to continue quarter-over-quarter. Additional clients are expected to enter the verification phase in 2026, with 1.6T becoming mainstream among CSP clients by 2027.
Five stocks—Shijia Photons Co., Ltd., Changxin Bocon Co., Ltd., Eoptolink Technology Inc., Ltd., Guangku Technology Co., Ltd., and Zhongji Innolight Co., Ltd.—doubled their net profit year-over-year. Shijia Photons Co., Ltd. recorded the highest growth at 425.95%, while Yuanjie Semiconductor Co., Ltd. anticipated a turnaround to profitability. Shijia Photons Co., Ltd. reported 2025 revenue of 2.129 billion yuan, up 98.13%, and net profit of 342 million yuan, surging 425.95%. The company credited rapid data center market growth driven by AI, competitive products, and increased customer recognition, with orders rising across optical chips, components, indoor optical cables, and cable polymer materials.
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