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2026-06-29 10:48:16 Nomura released a report noting that HAN'S LASER (002008.SZ) announced last Thu (25th) that the company plans to invest in a project in Zhangjiagang, Jiangsu Province using internal funds and self-raised capital. The project will have an annual capacity of 2,000 tonnes of optical fiber preforms and synthetic quartz, equivalent to 60 million fiber-km of optical fiber, with total investment not exceeding RMB2.52 billion. Construction will be carried out in two phases, with RMB1.52 billion invested in the first phase and RMB1 billion in the second phase. In addition, HAN'S LASER announced at its shareholders癒礎 meeting that it plans to use RMB306 million of internal funds to acquire a 51% stake in Lingxian Technology (Nantong), which owns high-end hollow-core fiber technology applicable to scalable AI network deployment. The broker said another recent optical fiber capacity expansion case involves HOSHINE SILICON INDUSTRY (603260.SH), which has announced its intention to enter the optical fiber industry with an annual production target of 3,200 tonnes of optical fiber preforms. According to the company, the project received government approval on June 8. Nomura stated that HAN'S LASER and HOSHINE SILICON INDUSTRY are relatively new entrants to the optical fiber market. The broker believes their recent investment projects reflect strong demand for optical fiber, mainly driven by AI data center infrastructure construction. At the same time, it noted that the optical fiber preform industry has high technical barriers and is currently dominated by existing players such as Corning Incorporated (GLW.US), Fujikura (5803.JP) and YOFC (06869.HK). In the short term, the broker expects supply constraints to persist, allowing YOFC to continue benefiting from higher spot prices and margin expansion driven by deeper penetration into the AI data center market. However, if new entrants successfully develop high-end products (i.e., hollow-core fiber and multi-core fiber) and effectively execute their capacity expansion plans, the broker believes market competition will intensify, and existing players such as YOFC may face pressure on margin expansion. The broker maintained its Buy rating on YOFC's H shares, with a TP of HKD266 based on 23.7x FY2027E EPS of RMB9.75. AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |