Nomura says recent capex by Han's Laser and Hoshine Silicon indicates
accelerating optical-fiber capacity expansion driven by AI data-center buildout.
The preform market retains high technical barriers and is currently led by
Corning, Fujikura and Yangtze Optical Fibre and Cable, so Nomura expects supply
constraints to persist short term, supporting elevated spot prices and helping
Yangtze expand margins via greater AI data-center exposure. However, if new
entrants successfully develop high-end products (hollow-core and multi-core
fiber) and execute planned capacity additions, competition could intensify and
pressure margin expansion for incumbent producers. Nomura keeps a BUY on Yangtze
Optical Fibre and Cable (06869.HK) with a HK$266 target, based on FY2027 EPS of
RMB9.75 and a 23.7x forward P/E.
