The optical communication and CPO sectors, representing the computing power theme, experienced another significant rally today (April 9). Industry leader Yangtze Optical Fibre And Cable Joint Stock Limited Company reached a new high with a 10% daily limit gain, marking an increase of over 12 times since the low point in April 2025. Other key players like Zhongji Innolight also continued to set new records. Additionally, Dongshan Precision and Accelink both hit the daily limit and achieved historic highs.
Following a period of adjustment, market sentiment is rapidly recovering. This is reflected in the resurgence of over 100 stocks reaching the daily limit on both April 7 and April 8, with counts of 101 and 135 respectively. Trading volume has also rebounded, with turnover rising from 1.62 trillion yuan on April 7 to 2.45 trillion yuan on April 8. Despite uncertainties from external factors such as the Middle East situation, major investors are increasing their positions in favored opportunities, particularly within the hard technology sector.
The hard technology track is the core leading direction among recent strong performers, centered on computing power and encompassing areas like optical communication, optical fiber, CPO, and PCB. This trend is supported by several clear logic lines: catalysts from technological innovation, performance and profit realization driven by market demand, and expectations of accelerated commercialization due to increased capital expenditure.
Recent market performance aligns with this industrial logic. On April 8, the optical communication and CPO sectors both rose over 5%. On April 9, they advanced more than 1% again, reaching new historical highs. Individual stock performances have consistently exceeded expectations, with leading stocks not just hitting limits but showing sustained upward momentum. First-tier leaders that have multiplied since their surge in the second quarter of last year—such as Zhongji Innolight, Eoptolink, TFC Optical, and SJC Optical—have shown strong performance recently. Zhongji Innolight and Eoptolink set new highs on April 8, and on April 9, Zhongji Innolight climbed further while SJC Optical saw a temporary surge of 14%, also reaching a record high.
Mid- and low-tier stocks are also experiencing rotational gains. Not long ago, Accelink released the world's first 3.2T silicon photonics single-mode NPO module, after which its stock began a steady rebound, culminating in a 10% daily limit gain on April 9.
Within specific segments, optical fibers and cables in the optical communication sector have recently become a market hotspot, with leading stock prices continuously setting new highs. After a nearly 20% surge on April 8, the Hong Kong-listed Yangtze Optical Fibre And Cable Joint Stock Limited Company rose another nearly 7% on April 9, accumulating a year-to-date increase of over 300%. The A-share counterpart, Yangtze Optical Fibre And Cable Joint Stock Limited Company, hit the daily limit again on April 9, soaring 1240% over the past year since April 9, 2025. Notably, Changxin Bouchuang, controlled by Yangtze Optical Fibre And Cable Joint Stock Limited Company, has attracted strong capital interest, with its stock surging over 12% on April 9 to a record high, pushing its market capitalization above 60 billion yuan. Since March 24, it has rallied 70%.
The PCB sector, often called the "mother of electronic products," provides the physical support and signal transmission foundation for computing systems and offers critical circuit connections for optical communication equipment, collectively advancing AI computing power and high-speed data transmission. Recently, as the computing power theme rotated, PCB concept stocks also displayed strong performance, rising 6.35% on April 8 and advancing over 1% at one point on April 9.
From an industry trend perspective, PCB is entering a new cycle of prosperity driven by exploding AI computing demand, technological iteration, capacity expansion, and performance delivery. Recent price increases due to supply-demand imbalances are stimulating the industry chain. The PCB sector involves upstream raw materials, midstream manufacturing, and downstream applications. Upstream materials include CCL, copper foil, glass fiber cloth, and epoxy resin. Midstream manufacturing encompasses rigid boards, FPC, and high-end HDI boards. Recently, Japan's Mitsubishi Gas Chemical raised prices for all electronic materials, including copper foil substrates and resins, by 30%.
Industry vitality is also confirmed by listed companies' intensive capacity expansions. On April 9, Sihui Fuji announced plans to raise up to 950 million yuan for a high-end PCB capacity project targeting 600,000 square meters of high-layer and HDI circuit boards. On April 7, OKE stated it is actively planning to expand capacity and supply of PCB drill bits and rods. On March 6, Wus Printed Circuit announced a planned 5.5 billion yuan investment in a PCB project. On March 17, Avary Holding disclosed a plan to invest 11 billion yuan in building a high-end PCB production base.
Furthermore, some companies are expanding PCB-related capacity through acquisitions. For instance, Minblast recently announced plans to acquire a 51% stake in PCB drill bit company Xiamen Zhicheng for 245 million yuan in cash. Minblast's main business is LED lighting, while Xiamen Zhicheng focuses on PCB drill bits, core consumables for PCB manufacturing. Recently, Minblast's stock saw consecutive volume-backed gains, rising over 30% since April.
The PCB sector's vigor is further evident in company earnings. On April 8, Dongshan Precision announced an expected first-quarter net profit growth of 119% to 152%. Its stock recently recorded two 10% daily limit gains and reached a new high. Dongshan Precision attributed this to stable shipments of printed circuit boards, precision components, and photoelectric modules in consumer electronics, automotive, and communications sectors, alongside strong AI computing demand driving accelerated investment in AI infrastructure. On the same day, Guanghe Technology also issued a positive profit alert, forecasting a net profit increase of 58.09% to 66.41% year-on-year. This anticipated growth is closely linked to its focus on the computing power PCB market for general servers, AI servers, and accelerator cards.
Major institutions express optimism toward the PCB sector. For example, CITIC Securities stated that the underlying growth logic for the AI PCB industry is continuously strengthening, with potential catalysts ahead and improving visibility for increments in the coming years. From both earnings and valuation perspectives, leading manufacturers' performance expectations are gradually being realized, and valuation levels have room for further upward revision. CITIC Securities affirmed a firm bullish outlook on the PCB sector's upward momentum at the current juncture.
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