HK Stock Market Move | Cig Shanghai (06166) rebounds by over 15%, with a 276% year-on-year increase in the net profit attributable to the parent company in the first quarter. The growth of optical communications is being driven by the demand for computing power.

Cig Shanghai (06166) surged more than 15%, with its A-shares hitting the daily limit up. As of the time of writing, it had risen by 14.48%, reaching HK$127.3, with a turnover of HK$2.787 billion. In terms of news, Cig Shanghai recently announced that it achieved operating income of RMB 1.287 billion in the first quarter of 2026, a year-on-year increase of 43.98%; net profit attributable to shareholders of the listed company was RMB 118 million, a year-on-year increase of 276.44%. During the reporting period, the scale of the high-speed optical module business increased. The increase in operating income was mainly due to the growth in shipments of core business products. The net profit for Q1 of 2026 was RMB 118 million, compared to RMB 4 million for Q4 of 2025, resulting in a quarter-on-quarter net profit increase of 2722%. FIRST SHANGHAI believes that in the extremely strong background of computing power demand, the growth rate of optical communication is significantly higher than the industry average growth rate, and it continues to be optimistic about investment opportunities in the optical communication industry, including companies related to optical modules, optical chips, and optical devices. According to reports, Ho Li, the general manager of Zhiyu Investment, believes that the optical communication sector meets the triple conditions of industrial trends, order visibility, and performance realization. In the context of the fiercely competitive AI large model competition, optical modules/CPO/XPO, optical chips, and optical connectors are physical links that can transform AI computing power into actual output, with their performance realization slope far exceeding that of other industries.