The Zhitong Finance App learned that Junzhi Group (01300) rose more than 8% in early trading. As of press release, it rose 6.91% to HK$3.015, with a turnover of HK$136.274 million.

According to news, recently, Junzhi Group won 100% of Qinghai Zhongli Optical Fiber Technology Co., Ltd.'s shares for 455 million yuan. According to reports, Qinghai Zhongli has already started production of 400 tons of prefabricated rods and 5 million core kilometers of optical fiber. The equipment for the third phase of the 600-ton prefabricated rod project is already in place. It is suspended due to a funding gap. After capital is injected, it can be quickly restarted. The total planned production capacity will reach 1,000 tons of precast rods

Everbright Securities pointed out that upstream light bars have become a core bottleneck in the industrial chain, and the rigidity of expanding production limits the release of effective production capacity. Optical rods account for about 70% of the cost of optical fiber. The production expansion cycle generally takes 18-24 months, and the pace of supply release clearly lags behind demand. If successfully implemented, this acquisition is expected to complete the Group's “optical bar-fiber-optical cable” industrial chain layout and open up incremental space for optical fiber products related to AI computing power.

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