Shares of NANFANG COMM (ASX: 01617) have surged more than 20%. At the time of writing, the stock is up 20.69% to HK$0.70, with a turnover of HK$31.42 million.
According to the company's 2025 annual report, its primary business involves the manufacturing and sales of various optical cable products and related equipment, as well as the processing and sales of color-coated steel plates. Through its joint venture and associated entities, the company has established a complete industrial chain encompassing fiber optic preforms and optical fibers. It offers a range of optical cable models and related equipment to meet diverse customer requirements.
NANFANG COMM holds a 51% stake in Yingke Guangdao, which is principally engaged in the manufacturing and sales of fiber optic preforms. These preforms, also known as "optical rods," are the foundational rod-shaped materials that determine the performance characteristics of optical fibers. They are categorized into three main types: A, B, and C. Notably, the A2 class of fiber optic preform, classified as a high-end product, is experiencing explosive demand growth.
Industry experts indicate that fiber optic preforms, being the upstream material for optical cable products, account for approximately 70% of the industry's profit distribution. Data shows that the quoted price for A2 class preforms has risen from a range of 22 to 30 yuan per equivalent core-kilometer at the beginning of 2025 to 160 yuan per equivalent core-kilometer in 2026, representing an increase of nearly 550%.
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