The Zhitong Finance App learned that Goldman Sachs released a research report stating that while maintaining the “neutral” rating of Changfei Optical Fiber Cable (06869), the target price rose slightly from HK$290 to HK$292. The bank maintains a positive view on Changfei Optical Cable's product portfolio upgrade from the telecommunications market to the AI data center market, and the expansion to polarized optical fiber to seize opportunities for co-packaged optical/next-generation network processors. Due to the next quarter's results, the bank raised its 2026-2028 profit forecast by 44%, 36% and 12%, mainly reflecting an increase in revenue and gross profit forecasts.
Goldman Sachs pointed out that Changfei Optical Fiber Cable's net profit for the second quarter of this year surged by 606% to 2.4 billion yuan, which is in line with the company's earlier forecast range of 1.9 billion to 2.5 billion yuan, mainly driven by the increase in the average sales price of optical fiber products. The gross margin for the period reached 60.5%, far higher than 41.5% in the first quarter and 28.7% in the same period last year, outperforming the bank's expectations.
Looking ahead to the second half of the year, Goldman Sachs expects Changfei Optical Cable's revenue to continue to grow quarterly, benefiting from more fiber projects reflecting higher pricing, and upgrading the product portfolio to AI data center products with higher average sales prices. In addition, Changxin Bochuang (300548.SZ), a subsidiary of the Group, recently announced the signing of a four-year long-term agreement with the customer to provide large-scale solutions, with a contract value of not less than 4.5 billion yuan.