Zhongji Innolight stated that optical interconnect's share of global AI capital expenditure is expected to rise from approximately 5% to 10% or more over the long term.
Following recent stock price declines in several optical module stocks, at midday on October 23, five A-share optical module companies issued announcements disclosing their recent production and operational conditions.
Among the "Yizhongtian" optical module concept stocks, Zhongji Innolight (300308.SZ) stated that the company's production and operations are normal, its supply chain is stable, capacity utilization is sufficient, and order demand is strong. Tianfu Communication (300394.SZ) stated that the company's production and operational order is normal, orders on hand are sufficient, and no major abnormal changes have occurred in the internal and external operating environment. Eoptolink Technology (300502.SZ) stated that production and operations are proceeding in an orderly manner, orders on hand are sufficient, and 1.6T optical modules have entered a phase of continuous volume production, with shipment pace expected to accelerate.
Looking ahead, Zhongji Innolight expects downstream demand to remain highly prosperous, with orders from major overseas customers already extending to 2027. Demand for high-end optical modules is maintaining rapid growth, and demand for next-generation optical interconnect products is expected to gradually be released. Eoptolink Technology stated it holds a positive outlook for business development in the current and next year. Tianfu Communication stated that both its active and passive products have a market foundation for further development.
Regarding industry development, all three "Yizhongtian" companies mentioned that industry prosperity is high or that fundamentals have not changed significantly. Tianfu Communication stated that industry development prosperity is high, and the optical interconnect industry will overall remain in a stage of rapid development for some time to come. Eoptolink Technology stated that industry fundamentals have not changed, and the overall development trend is positive. Zhongji Innolight stated that industry demand is showing a trend of rapid growth, and optical interconnect's share of global AI capital expenditure is expected to rise from approximately 5% to approximately 10% or more over the long term.
In addition to "Yizhongtian," optical module industry chain manufacturers Yuanjie Technology (688498.SH) and Accelink Technologies (002281.SZ) also issued announcements at midday. Yuanjie Technology stated that the overall industry development trend is normal, and the company's production and operational activities, order delivery, and capacity expansion are proceeding normally. Accelink Technologies stated that the overall industry development trend is consistent with previous assessments, there is no occurrence of major adverse changes, and the company's production and delivery order is normal.
Zhongji Innolight and Eoptolink Technology also released information regarding share buybacks. Eoptolink Technology announced plans to repurchase common stock (A-shares) through centralized bidding, with repurchase funds of no less than 800 million yuan and no more than 1 billion yuan, to be used for equity incentives or employee stock ownership plans. Zhongji Innolight announced in September a share repurchase of 4 billion to 8 billion yuan, and this time disclosed that it plans to convene a board meeting on October 29 to review a proposal to change the purpose of the repurchased A-shares, changing the purpose of all repurchased shares from "implementing employee stock ownership plans or equity incentive plans" to "for cancellation and reduction of registered capital."
Optical modules are one of the key components of AI computing infrastructure construction, and the main customers of some A-share optical module manufacturers are overseas AI companies. Recently, amid market concerns that AI infrastructure construction may slow down, stock prices of several AI computing-related stocks on the U.S. market have fluctuated. Stock prices of several A-share optical module manufacturers have also declined to some extent. From September 22 to October 22, the stock prices of Zhongji Innolight, Eoptolink Technology, and Tianfu Communication cumulatively fell 37.19%, 43.51%, and 29.46% respectively. The combined market value of "Yizhongtian" fell by more than 750 billion yuan, while the stock prices of Yuanjie Technology and Accelink Technologies cumulatively fell 49.93% and 34.15% respectively.
In early trading today, Zhongji Innolight fell more than 5% at one point, Eoptolink Technology fell more than 8% at one point, and Tianfu Communication fell more than 7% at one point. As of 13:31, the declines of Tianfu Communication and Eoptolink Technology narrowed to 0.6% and 1.18% respectively, while Zhongji Innolight turned positive and rose 1.66%.
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