Changes in Hong Kong stocks | Optical fiber concept stocks had the highest decline, Hengtong Optoelectronics fixed an increase of 6.6 billion yuan to increase the optical communication market, and concerns about the expansion of production caused overcapacity

The Zhitong Finance App learned that fiber concept stocks had the highest decline. As of press release, Changfei Optical Fiber & Cable (06869) fell 11.37% to HK$165.3; Junzhi Group (01300) fell 8.84% to HK$3.145; and Huiju Technology (01729) fell 3.41% to HK$16.73.

According to the news, on the evening of September 24, fiber optic leader Hengtong Optoelectronics revealed a fixed increase plan to issue no more than 740 million A-shares, raise no more than 6.636 billion yuan in total capital, and plan to invest in 9 projects including Optical Communications. Specifically, the “Next Generation Optical Fiber R&D and Production Project” plans to invest 758 million yuan, and the “Inner Mongolia Optical High-end Optical New Material Construction Project” plans to invest 862 million yuan. These two form the core of the expansion of production capacity for prefabricated optical fibers and special optical fibers.

UBS recently released a research report saying that it covered China's fiber optic cable industry for the first time, and believes that investors' concerns about overcapacity and profit peaking in 2027 are significantly overestimated. UBS pointed out that since the stock price peaked in June, Changfei has fallen 37% because investors are worried that the expansion of optical fiber production capacity announced by peers and the new company may cause the company's profits to peak in 2027. However, UBS believes that the risk of overcapacity is limited.