A-shares have been rallying on mid-year reports for several days, with performance becoming the main focus

Fiber Optic Sector

1. Industry Fundamentals: Fiber Optic Quantity and Price Rise Together
The trend of fiber optic price increases is clear throughout the year, with a 70% month-on-month increase in May; overseas Fujikura raised DCI interconnection cable prices by 30%, while also significantly increasing annual profits, with tight capacity supporting continuous industry price hikes.

2. Core Driving Force for the Rise: MPO Business
AI computing power demand drives simultaneous growth in MPO quantity and price; Longfei, Hengtong, Zhongtian, and FiberHome have integrated industrial chains and are positioned to benefit from raw material advantages in MPO jumpers; Zhongtian secured a 1.52B yuan domestic cloud vendor MPO large order, marking the official scale-up of industry procurement. Domestic fiber optic companies are entering the North American market, achieving breakthroughs in MPO cabling business, with potential for sector valuation re-rating; Fujikura has initiated a price increase cycle, and the North American AI data communication fiber optic price hike cycle continues, with related companies' profits steadily rising.
Related stocks: Longfei, Hengtong, Zhongtian