TRIGIANT (01300) surged more than 8% in early trading. As of press time, the stock was up 6.91% at HK$3.015, with a turnover of HK$13.6274 million.

On the news front, TRIGIANT recently won the bid for 100% equity of Qinghai Zhongli Optical Fiber Technology Co., Ltd. for RMB 455 million. It is reported that Qinghai Zhongli has already put into production an annual capacity of 400 tons of preforms and 5 million core-kilometers of optical fiber. The Phase III project with an annual capacity of 600 tons of preforms has its equipment in place but was suspended due to a funding gap. Once capital is injected, it can quickly restart, bringing the planned total capacity to 1,000 tons of preforms.

Everbright Securities pointed out that upstream optical preforms have become the core bottleneck of the industry chain, and rigid constraints on capacity expansion effectively limit the release of production capacity. Optical preforms account for approximately 70% of optical fiber costs, and the capacity expansion cycle generally takes 18-24 months, with supply release clearly lagging behind demand. If this acquisition is successfully completed, it is expected to complete the group's "preform-fiber-cable" industry chain layout and open up incremental space for AI computing power-related optical fiber products.