Huatai Securities: The fiber optic cable industry is entering a historical major cycle.

According to a research report from Huatai Securities, since the fourth quarter of 2025, the global optical fiber cable market has shown a "quantity-price resonance" trend. The core driving force of this round of optical fiber cable prosperity cycle lies in the restructuring of supply-demand relationship. The market believes that the rise in optical fiber prices will trigger large-scale production expansion by companies, but Huatai Securities believes that the industry's limited effective new supply in the next 2 years may prolong the prosperity cycle. Firstly, the production expansion cycle of optical rods is long, and the industry tends to be rational after the last round of consolidation, making it difficult for large-scale new production capacity to come online in the short term; secondly, high-end optical fibers are squeezing out capacity, with mainstream manufacturers tilting towards AI communications and UAV A2 products, squeezing out the supply of ordinary optical fibers. Huatai Securities believes that leading companies have a high share of optical rod production capacity, the industry structure is concentrated and optimized, which enables the leading companies to have stronger bargaining and profit acquisition abilities when supply and demand are tight. At the same time, leading companies are expected to improve performance growth through export structure optimization and increasing the proportion of high-end products. Second-tier companies that have the ability to resume or expand optical rod production and have low valuations may have a dual opportunity for "performance restoration + valuation restoration" in the background of recovering demand and leading companies reaching full production.