CIG (06166) rose more than 11% in the afternoon session, reaching a new all-time high of HK$140.2. At the time of writing, the stock was up 11.46% at HK$140.1, with a turnover of HK$1.22 billion. Industry forecasts indicate strong growth prospects for the AI-dedicated optical transceiver module market, with TrendForce predicting the global market size will reach $26 billion this year, representing a 57.6% year-on-year increase. Furthermore, first-quarter reports from five listed companies in the optical module sector show robust performance. Among them, Zhongji Innolight led with a 192.12% year-on-year increase in revenue and a 262.28% surge in net profit attributable to shareholders. Companies like Tianfu Communication and Shijia Photon also reported double-digit growth in both revenue and net profit. Huaxin Securities previously noted that CIG has a comprehensive product portfolio in optical modules, including Retimed 1.6T 2×DR4/DR8, 1.6T 2×FR4, OSFP DR8, and Gearbox 800G DR4 models, alongside LPO/LRO variants primarily based on silicon photonics technology. By 2026, the company expects 800G optical modules to remain the primary shipment driver, with 1.6T modules commencing mass shipments in the first quarter and showing an upward trend. Continued technological advancements, capacity expansion, and customer diversification are anticipated to support sustained earnings growth.
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