06869.HK (Changfei Optical Fiber and Cable): A Popular Hong Kong Stock Amid AI Wave, with Both Performance and Valuation Rising

This analysis is based on information from Tushare dc_hot (East Money App Hot List (Popularity List, Hong Kong Stock Market)), focusing on the recent performance of Hong Kong stock 06869.HK (Changfei Optical Fiber and Cable). As a leader in China’s optical fiber and cable industry [1], the company’s stock price has risen about 3 times cumulatively in 2025 [0], with sustained performance growth, mainly benefiting from data center construction demand driven by the AI wave [6], overseas business expansion, and rising demand for transmission products [0]. Regarding major bank ratings, DBS raised the target price to 40.3 yuan [3], and Huatai maintained an overweight rating [4].

Changfei Optical Fiber and Cable (06869.HK) was founded in 1988, with its headquarters located in Wuhan Optics Valley. It is a leading enterprise in China’s optical fiber and cable industry [1], whose main business covers the R&D, production, and sales of optical fiber preforms, optical fibers, and optical cables [0]. Since 2025, the company has shown strong performance: first-half revenue increased by 19.4% year-on-year, and core net profit grew by 14.8% [0]; third-quarter revenue was 3.891 billion yuan, up 16.27% year-on-year [0]; cumulative revenue for the first three quarters was 10.275 billion yuan, a year-on-year increase of 18.18%, and operating profit increased by 63.3% year-on-year [0].

1. AI and Data Center-Driven Demand
   : Amid the AI wave, the demand for high-speed optical fibers for data center construction has surged, becoming the core driver of the company’s growth [6][0].
2. Dual Drivers from Overseas Business and Domestic Demand
   : Overseas business expansion and rising domestic demand for transmission products have jointly promoted revenue growth [0].
3. Favored by Southbound Funds
   : The company is one of the Hong Kong stocks with a large proportion of holdings by southbound funds [2], and market attention has increased significantly.

• Opportunities
  : The continuous penetration of AI technology will further drive optical fiber demand [6]; there is broad room for expansion in overseas markets [0].
• Risks
  : Some major banks have adjusted their ratings to “fully valued”, indicating that valuations may have reflected current positive factors [3]; intensified industry competition may affect profit margins [1].

As an industry leader, Changfei Optical Fiber and Cable benefits from the long-term trends of AI and data center construction, with clear performance growth. Investors need to pay attention to valuation levels and changes in industry competition, while seizing long-term opportunities brought by technological changes.