CITIC Securities: The slowing of the CPO rhythm means that the NPO may accelerate its progress, and we continue to be optimistic about the optoelectronics communication sector.

CITIC Jiantou Securities research report stated that recently, the American semiconductor research institution SemiAnalysis released a report stating that the demand for copper cables and pluggable optical modules is expected to continue to grow in the long term. The mass production of CPO may be delayed until 2028 or even 2029, with a slowdown in the CPO pace indicating a possible acceleration in NPO. CITIC Jiantou believes that both CPO and NPO mainly target the Scale Up market, which is an incremental market for pluggable optical module suppliers. Traditional pluggable optical module companies can participate deeply in this incremental market. Recently, the optical communication sector has experienced adjustments due to previous large increases and emotional disturbances. CITIC Jiantou believes that this does not affect the overall positive trend of the industry, and maintains an optimistic and positive attitude towards the prosperity of the entire optical communication and CPO/NPO industry chain.