Fiber optic cables price increase + going overseas, old tracks can also tell new stories now

Huatai Securities research report uses 130 listed communication companies as samples, with Q1 2026 revenue up 7.3% year-on-year and net profit attributable to parent up 5.4%, overall stable. Profit margins for leading manufacturers of optical modules/optical chips and optical fiber cables continue to grow, while ICT equipment, copper connections, and liquid cooling segments maintain steady revenue. Looking ahead to the second half of the year, increased global AI computing power investment is expected to drive sustained high growth in optical communication net profits, with fiber optic cable price hikes releasing profit elasticity; sectors such as IDC and copper connections are boosted by AI demand, and the expansion of super nodes and overseas markets is expected to enhance profitability.