According to a report published by Morgan Stanley, 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 buying point. It decided to raise its H-share rating from “synchronizing with the market” to “increase holdings” and maintain the target price at HK$230. According to the report, Changfei Optical's performance forecast released on July 14 shows that the second-quarter profit is expected to reach 1.9 billion to 2.5 billion yuan, which makes it very likely that the bank's forecast of annual profit reaching 7.5 billion yuan will be realized. Furthermore, although the market was previously concerned about supply risks brought about by the expansion of new production capacity, the bank expects capacity expansion to take time, and demand from the booming development of AI infrastructure is still strong, so there will be no substantial change in profit growth momentum over the next 6 to 12 months. Changfei Optical Fiber is also a leader in next-generation technological innovation. It successfully completed the world's first field test of an air core optical fiber wavelength division multiplexing transmission system in June 2026, further establishing its leading position in technology.

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