Nomura: Maintain Changfei Optical Cable (06869) target price of HK$266 and “buy” rating

The Zhitong Finance App learned that Nomura released a research report stating that it maintains the target price of HK$266 and the “buy” rating for Changfei Optical Fiber Cable (06869).

According to Nomura, China Mobile (00941) issued a tender notice for the centralized collection of ordinary optical cable products from 2026 to 2027 on July 8. The procurement scale is about 69.2 million core kilometers. The demand satisfaction period is 9 months after the announcement of the procurement results, which is equivalent to an annual demand of about 92.3 million fiber kilometers. Compared with the 2025-2026 purchase volume of 98.8 million core kilometers, the annual demand decreased by 6.6% compared to the same period last year.

China Mobile did not announce the upper bid price limit for this tender; however, given the recent rise in prices in the optical fiber industry, the bank expects the bid price to rise this year. In 2025, the weighted average bid price for optical cable products was RMB 53.85 (including VAT) per core kilometer, while the price of optical fiber was less than RMB 25. Nomura expects the results of the tender to be announced within a month, and details such as the price and share allocation of the winning supplier will be announced at the same time.