TRIGIANT (01300) climbed more than 15% during the morning session, with shares hitting an intraday peak of over 26%. At the time of writing, the stock was trading at HK$3.39, representing a 14.92% gain and a turnover of HK$48.94 million.

The rally follows the company's announcement that its subsidiary successfully won the bid for a 100% equity stake in Qinghai Zhongli Fiber Optic Technology Co., Ltd., with a transaction value of RMB 455 million.

Where the growth potential lies: According to China Securities, Qinghai Zhongli has already commenced production of 400 tonnes of optical preforms and 5 million core kilometers of optical fiber annually. The equipment for the third-phase project, which would add another 600 tonnes of preform capacity, has been installed but operations were suspended due to funding shortfalls. With the injection of new capital, production could restart quickly, pushing the planned total capacity to 1,000 tonnes.

Optical preforms account for roughly 70% of fiber manufacturing costs, and the expansion cycle typically spans 18 to 24 months, meaning supply growth trails demand by a significant margin. If the acquisition is completed smoothly, it could fill the group's "preform-fiber-cable" supply chain gap and unlock new growth avenues for optical fiber products tied to AI computing demand.