Optical Communications Sector Sees Sharp Pullback Since Q3, Public Funds and Insurance Capital Add to Leading Stocks Against the Trend

Despite a sharp pullback in the optical communications sector since the third quarter of this year, third-quarter earnings from the sector's major listed companies confirm that the track continues to enjoy high prosperity. Public funds and insurance capital are actively adding to industry leaders. Statistics show that in the first three quarters of 2026, net profit attributable to shareholders at 20 major listed companies in the optical communications track grew faster than revenue, and average gross margin rose from 36% to 42%. Companies have generally increased inventory stocking and capacity expansion. On a single-quarter basis, optical chips, equipment and optical components posted the highest gross margins in the third quarter, while Yangtze Optical Fibre and Cable, Dongshan Precision and Cambridge Technology saw gross margins rise sharply compared with year-end 2025. The industry chain is actively positioning for next-generation optical communication solutions such as CPO and NPO, and is advancing customer verification and adoption. (Securities Times)