With the Spring Festival approaching, the market has delivered an early gift to investors. Today's trading session provided strong returns, with major indices showing widespread gains.
The Shanghai Composite, Shenzhen Component, and ChiNext indices all opened higher and maintained upward momentum. The Co-Packaged Optics (CPO) sector led the gains, with companies like Tianfu Communication, Changxin Bochuang, Tengjing Technology, and Luoboteke hitting new record highs.
The strong performance of the CPO sector was driven by four key catalysts. First, new computing power policies have been implemented. The Ministry of Industry and Information Technology issued a notice on building national computing power interconnection nodes, establishing a "1+M+N" computing power system to enhance resource flow. This directly boosts demand for high-speed optical modules and CPO technology.
Second, industry collaborations are providing a catalyst. Tower Semiconductor is partnering with NVIDIA to develop advanced silicon photonics technology for 1.6T data center optical modules, reinforcing CPO's central role in AI data centers and boosting market growth expectations.
Third, market sentiment has improved. Major A-share indices rose across the board, with the ChiNext and STAR 50 indices gaining over 2%. Growth-oriented styles attracted capital inflows, with CPO—as a core hardware segment for AI computing—becoming a key destination for funds.
Fourth, earnings visibility has strengthened. North American cloud providers are projected to increase capital expenditures by over 50% year-on-year by 2026. As 800G/1.6T optical modules enter a volume expansion phase, CPO-related stocks show clear earnings growth prospects for 2026, attracting institutional investment.
Sector fundamentals are further solidifying. The 800G/1.6T optical module market is now scaling up, with demand for 1.6T products surging more than 40-fold year-on-year. CPO technology, as the optimal solution for ultra-large-scale AI clusters, significantly reduces power consumption and latency, creating synergies with high-speed optical module expansion. Domestic leading companies continue to improve yields and maintain full order books, ensuring smooth demand transmission across the industrial chain and reinforcing 2025 earnings growth expectations for CPO stocks.
Among the 20 companies in the CPO sector, 13 have issued preliminary annual reports, with 10 expecting year-on-year profit growth for the full year. Zhongji Innolight anticipates the highest net profit, projecting attributable net profit between approximately 9.8 billion and 11.8 billion yuan, an increase of about 89.5% to 128.17% year-on-year, driven by strong customer investment in computing infrastructure and rising sales of high-speed optical modules.
Sunrise also demonstrated robust profitability, with expected attributable net profit near 10 billion yuan. The company forecasts net profit between approximately 9.4 billion and 9.9 billion yuan, a surge of 231.24% to 248.86% year-on-year, benefiting from growing demand for high-rate products amid continued computing investment.
From a growth perspective, Shijia Photon expects the most notable increase, projecting attributable net profit of about 341.5 million yuan, a year-on-year rise of 425.95%, due to improved operational efficiency and product competitiveness.
Amid policy support and strong earnings, institutional investors are clearly demonstrating long-term confidence in the CPO sector, with state funds actively increasing their exposure. For example,亨通光电 saw new significant holdings from the Basic Pension Fund 808 Portfolio and the National Social Security Fund 101 Portfolio in the third quarter of 2025. The company recently completed phase one expansion of its AI advanced optical fiber materials R&D and manufacturing center, strengthening its competitiveness in specialty optical fibers. Its share price reached a new record high.
光迅科技 also received new investment from the National Social Security Fund 502 Portfolio, which held 6.5244 million shares at the end of the third quarter.安孚科技 and源杰科技 saw further increases in holdings by state funds during the same period.
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