Fiber optic vents are in their prime, with Longfei leading nonstop; can we expect the second tier to take the baton?

Ask AI · How does FiberHome Communications’ radiation-resistant optical fiber technology open up new markets in satellite communications?

When the stock price of Yangtze Optical Fibre and Cable (601869) hits a historical high of 330 yuan, FiberHome Communications (600498), another core player in the optical fiber sector, is still trading in a range around 50 yuan. In this round of optical fiber market rally, FiberHome Communications’ performance relative to the sector leaders is still somewhat lagging.

As a leading central state-owned enterprise in the industry, FiberHome Communications has added 59 new patents this year. Its independently developed 1100kGy radiation-resistant optical fiber technology has recently passed an international authoritative assessment, successfully breaking foreign technology restrictions, and demonstrates solid technological barriers and strategic value.

Since the third quarter of 2025, the optical fiber industry has officially shifted from recovery to a high-prosperity cycle characterized by “tight supply and rising volume and prices,” becoming the most core fundamental support for investment in the sector. On the pricing side, domestic optical fiber prices have continued to rise sharply. According to CRU data, in January 2026, the domestic G652D optical fiber price rose to 31.5 yuan per core-kilometer, up 79% from November 2025. Local tender price increases are even more pronounced: in the emergency procurement by Heilongjiang Telecom, the price of G.652.D 24-core optical cable per single core-kilometer increased by 178% compared with the low point at the end of November 2025. The relevant optical cable prices of Guangdong Telecom doubled within three months to 2,500 yuan per sheath-kilometer. On the demand side, global demand for optical fiber and cables remains strong. In 2026, global demand for cables is expected to reach 577 million core-kilometers, up 5% year over year. Among them, North America’s demand growth rate reaches 17%. In 2027, global demand is expected to further rise to 880 million core-kilometers. On the profitability side, the cost of optical fiber preforms is relatively stable. The portion of the price increase can be directly translated into companies’ gross profit, and gross profit per core-kilometer is expected to rise from the industry low of 6 yuan to 110 yuan, showing very significant earnings leverage.

Yangtze Optical Fibre and Cable continues to set new historical highs, directly lifting overall sector sentiment. From the perspective of sector rotation patterns, after leading stocks reach their peaks, high-quality second-tier companies with core competitiveness are likely to see simultaneous catch-up in both valuation and stock prices. Relying on its central SOE background and strong capabilities for integrated industrial-chain collaboration, FiberHome Communications has a clear catch-up logic and fundamental support in the bonus cycle of rising industry volume and prices.

From the market trading perspective, FiberHome Communications has recently shown a clear divergence in fund flows. Over the past 3 days, net financing inflows reached 386 million yuan, reflecting leveraged funds’ recognition of the company’s prospects. Meanwhile, the stock price has repeatedly oscillated around the 50 yuan integer level, indicating fierce bull-bear battles as market funds contend.

Putting aside short-term trading volatility, FiberHome Communications’ free-float market capitalization is around 60 billion yuan. Among central SOE technology targets, it has a reasonable scale. At the same time, it has deeply positioned itself in three major high-prosperity directions—East Data West Computing, 6G, and CPO. Compared with purely optical module companies, it has a more complete industrial-chain depth, enabling it to fully benefit from policy tailwinds for domestic computing power network and communications infrastructure construction. The company’s 1100kGy radiation-resistant optical fiber technology has leading performance and can be widely applied in special scenarios such as satellite communications, nuclear industry, and space exploration. As the construction of integrated space-and-ground infrastructure advances, the commercial and strategic value of related technologies will gradually be recognized by the market.

From the industry development logic, the valuation reshaping of the optical fiber sector is not a linear rise, but rather a phased leap achieved through industry prosperity and technological breakthroughs. Against the backdrop of Yangtze Optical Fibre and Cable leading the sector rally, FiberHome Communications, as a core second-tier target with solid technology and clear positioning in its track, is expected to follow industry dividends to realize value repair.

This article only provides an objective analysis based on publicly available market data and industry information, and does not constitute any investment advice. Investors should combine industry trends, the company’s business progress, and their own risk tolerance to make rational judgments about investment opportunities.