HK Stock Market Move | Zhongji Innolight (03308) rose nearly 10% in the afternoon as the company strategically invested in Jones Tech Plc. The cooling of optical modules is expected to see both volume and price increase.

Zhongji Innolight (03308) rose nearly 10% in the afternoon, and as of the time of writing, it is up 8.94%, priced at HKD 1,279, with a transaction volume of HKD 1.542 billion. In terms of news, Zhongji Innolight announced its intention to acquire 10.47% of Jones Tech Plc for HKD 1.747 billion. It is reported that Jones Tech Plc specializes in high-performance thermal conductive materials and electromagnetic shielding materials, which can be widely used in data centers, computing power centers, and other digital infrastructure fields. As Zhongji Innolight continues to ramp up production of high-end optical module products such as 800G and 1.6T, the increase in power density has significantly boosted the demand for heat dissipation, creating industrial synergies between the two companies in the thermal management of optical modules. Northeast pointed out that in terms of value, the unit price of heat dissipation materials for optical modules in the 800G era is about 70 yuan. With the enhanced demand for heat dissipation in the 1.6T era, the value of heat dissipation materials is expected to grow further. Assuming that shipments of 800G and 1.6T optical modules reach 200 million units by 2027, the market space for optical module heat dissipation is expected to exceed 14 billion yuan, and this will continue to expand with the technological evolution of 3.2T, NPO, and CPO.