Shares of TRANSTECH (HKEX: 09963) surged more than 13% in the afternoon session. At the time of writing, the stock was up 13.69% to HK$8.22, with a turnover of HK$8.4 million.

Market Catalysts

Reports indicate that driven by AI computing infrastructure development, fiber optic cable manufacturers are experiencing full order books. In an optical communications industrial park in Suzhou, Jiangsu, 120-micron optical fibers are being drawn, cooled, coated, and wound onto spools at speeds of tens of meters per second. Production line managers noted that operations have been at full capacity since Q4 2025, with current orders scheduled through 2027.

However, the primary bottleneck for capacity expansion in the fiber optic cable industry is the supply of optical preforms, commonly referred to as "optical rods." In response to strong market demand, leading domestic companies are accelerating their efforts in self-research and production expansion for these preforms.

Company-Specific Developments

Previously, TRANSTECH announced that its wholly-owned subsidiary, TRANSTECH (Hong Kong) Investment Limited, intends to acquire the entire equity interest in Haomin Investment Holdings Limited from Haodaer Technology Co., Ltd. for approximately RMB 78 million.

The target company indirectly holds a 51% stake in a Hangzhou-based entity, which is primarily engaged in the production and sale of optical preforms and optical fibers in China. Optical preforms are the precursor material required for manufacturing optical fibers. The Hangzhou company's products are supplied to both independent clients and the Futong China Group. The optical fibers produced are a critical material for downstream optical cable manufacturing.