Changes in Hong Kong stocks | Changfei Optical Fiber Cable (06869) rose more than 7%. The company predicts a sharp rise in demand for polarized fiber in the next year or two

The Zhitong Finance App learned that Changfei Optical Fiber Cable (06869) rose by more than 7%. As of press release, it had risen 7.36% to HK$140, with a turnover of HK$512 million.

According to the news, at the 2026 World Artificial Intelligence Conference on “A New Paradigm for Optical Computing+Optical Interconnection Two-wheel Drive AI Infrastructure” held on July 18, Zhuang Dan, executive director and president of Changfei Optical Fiber said that the polarized fiber market is currently very popular. Demand for polarized fiber is expected to increase by 10 times and 20 times in the next year or two, and the company is working with partners in the industry chain to expand production of polarized fiber. The company announced a profit forecast on July 14. In the first half of this year, the company expects to achieve net profit of about 2.4 billion yuan to 3 billion yuan, an increase of 711% to 914% over the previous year. Mainly due to the accelerated construction of computing power data centers, demand for new fiber optic cable products at home and abroad continues to grow, and the industry's supply and demand structure continues to improve.

Morgan Stanley recently released a research report saying that Changfei Optical Fiber Cable has declined by about 50% since its high in June 2026, yet the profit growth trajectory supported by the AI-driven fiber supercycle has not changed. The bank believes that the valuation reduction has created a very attractive point to buy, and decided to raise its H-share rating from “synchronizing with the market” to “increasing holdings” to reflect the more attractive risk-return after the recent stock price correction, and maintain its target price at HK$230.