On September 22, CIG (06166.HK) rose 5.3% in regular trading, trading at 134.1 HKD/share, with turnover of 308 million HKD. The stock continued to benefit from a confluence of positive catalysts spanning sector momentum, institutional endorsement, and robust earnings.
On the news front, the optical communications sector has been on a sustained uptrend, with the industry widely viewed as being in an upcycle driven by AI computing power expansion, speed upgrades, and network architecture evolution. Guotai Junan Securities recently raised its earnings forecast and target price for CIG significantly to 424 RMB, maintaining an Overweight rating, citing expectations that the rapid increase in high-speed product revenue mix will drive substantial profit growth. The broker projects net profit attributable to shareholders at 1.836 billion, 10.407 billion, and 16.303 billion RMB over the next three years.
Fundamentally, CIG reported H1 revenue of 2.705 billion RMB, up 32.92% year-over-year, with net profit of 328 million RMB, surging 171.08%. The company's 800G optical modules have completed certification with multiple major clients and are shipping in volume, while 1.6T products are expected to enter mass production in H2. Among sector peers, YOFC rose 7.92%, ZJ Innolight rose 4.16%, and Trigiant gained 8.0%.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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