Eoptolink Technology Inc. Class A (SZSE: 300502) Extends Rally as Pentagon Flags Firm in China Military List Review

Eoptolink Technology Inc. Ltd. Class A shares (SZSE: 300502) stayed in the spotlight on Thursday, 27 November 2025, as the Shenzhen‑listed optical module maker continued its powerful rally while being named in fresh U.S. Pentagon disclosures about Chinese companies deemed to aid the Chinese military. ^[1]

Eoptolink stock price today: strong gains after an 8.66% surge

As of around 1:50 p.m. China Standard Time on Thursday, Eoptolink’s Class A stock was trading at ¥344.11 on the Shenzhen Stock Exchange, up 3.92% on the day from a previous close of ¥331.12. ^[2]

Key intraday and valuation metrics from today’s session:

Last price (intraday): ¥344.11
Open: ¥302.00
Intraday range: ¥302.00 – ¥364.90
Market capitalization: about ¥328.6 billion
Trailing twelve‑month revenue: ~¥20.0 billion
Trailing twelve‑month net income: ~¥7.5 billion
EPS (ttm): ¥7.56
Trailing P/E ratio: ~43.8x
Dividend (ttm): ¥0.32 per share (yield ~0.11%; ex‑dividend date 28 May 2025) ^[3]

Over the last twelve months, Eoptolink’s share price has climbed more than 300%, making it one of the standout winners in China’s AI‑hardware and optical communications theme. ^[4]

Momentum built on a huge move yesterday

Today’s advance comes directly after a powerful move on 26 November 2025, when:

The stock closed at ¥331.12, up 8.66% on the day.
Trading volume reached roughly 67.9 million shares, with turnover around ¥22.0 billion. ^[5]
“Main funds” (large, institutional money) were reported to have net bought about ¥1.65 billion in Eoptolink on that session. ^[6]

Separate margin‑trading data show that on 26 November, margin buyers purchased about ¥3.67 billion of Eoptolink shares, with net margin financing inflows of roughly ¥1.07 billion and an outstanding margin balance of about ¥16.44 billion, ranking the stock second in the A‑share market by net financing inflows for the day. ^[7]

That heavy institutional and leveraged participation helps explain why Eoptolink has been one of the most actively traded names on China’s growth‑oriented ChiNext board.

Turnover leader on the A‑share market at midday

In a midday market wrap published by 21st Century Business Herald, Eoptolink (traded in Chinese under its name 新易盛) was highlighted as the single largest turnover stock in the A‑share market on Thursday, with transaction value exceeding ¥16.5 billion in the morning session alone, amid strong interest in “computing power hardware” and AI‑related plays. ^[8]

A separate Chinese market piece on the “CPO” (co‑packaged optics) concept noted that Eoptolink was among the day’s strongest gainers in that theme basket, at one point rising more than 10% intraday, alongside other optical‑hardware names. ^[9]

Why Eoptolink is in global news today: Pentagon’s Section 1260H list review

The key international headline driving attention to Eoptolink on 27 November 2025 comes not from Shenzhen but from Washington.

Pentagon letter names Eoptolink among eight Chinese firms

Multiple Reuters‑based reports (carried by outlets including The Print, Korea JoongAng Daily, The Japan Times, The Economic Times, and others) say that:

The U.S. Department of Defense has concluded that Alibaba Group, Baidu and BYD, along with five other Chinese companies including Eoptolink Technology Inc., Hua Hong Semiconductor, RoboSense Technology, WuXi AppTec and Zhongji Innolight, “should be added” to its list of companies that aid the Chinese military. ^[10]
This conclusion was communicated in an October 7 letter to U.S. lawmakers by Deputy Defense Secretary Stephen Feinberg, referencing the so‑called Section 1260H list of Chinese military companies. ^[11]
Reports emphasize that it is not yet clear whether the firms have formally been added to the updated 1260H list; the Pentagon’s determination is part of an ongoing process. ^[12]

The Section 1260H list is mandated under U.S. law and identifies “Chinese military companies” operating in the United States. It does not automatically impose sanctions or outright bans, but it acts as a strong warning signal to U.S. government entities, contractors and investors about national‑security and compliance risks linked to companies on the list. ^[13]

Several reports quote Alibaba as saying there is “no basis” for its inclusion and stressing that being added would not affect its ability to conduct normal business in the United States, given its limited role in U.S. defence procurement. ^[14]

Eoptolink itself has not, as of this writing, publicly commented in English‑language sources on the Pentagon’s conclusion, and U.S. defence officials have not provided additional detail beyond the leaked and reported content of the letter. ^[15]

What the 1260H review could mean for Eoptolink’s Class A stock

While the Pentagon’s determination focuses on national security, equity markets are trying to assess whether it may alter Eoptolink’s growth prospects, customer relationships or investor base.

Reputational and compliance risk rather than immediate sanctions

Based on the Reuters and Bloomberg summaries:

Inclusion on the Section 1260H list does not itself prohibit U.S. persons from holding the stock or doing business with the company.
Instead, the designation serves as a “major warning” that can:
- Increase compliance costs for U.S. partners and investors;
- Prompt some institutional investors or index providers to re‑evaluate exposure;
- Create negative headline and reputational risk. ^[16]

For Eoptolink specifically, much of its revenue is generated in China and other non‑U.S. markets via optical modules for telecom networks and data centers, which may limit direct exposure to U.S. procurement bans. However, any deterioration in cross‑border technology cooperation or export‑control regimes could eventually affect access to U.S. chip ecosystems and overseas customers. (This is a forward‑looking interpretation of how such lists have worked in prior cases, not a stated fact from the Pentagon or regulators.)

Market reaction so far: resilience instead of panic

Interestingly, despite the clearly negative headline, Eoptolink’s share price has risen over the last two sessions:

+8.66% on 26 November, on huge volume and strong net institutional and margin‑financing inflows. ^[17]
A further ~4% intraday gain on 27 November, with the stock trading in a wide band between roughly ¥302 and ¥365 and remaining near the upper end of its 52‑week range (¥46.89 – ¥433.33). ^[18]

This suggests that, at least for now, local investors appear more focused on earnings momentum and AI‑hardware themes than on geopolitical risk. It is also possible that earlier dips on U.S.–China tensions were seen as buying opportunities, or that there is ongoing short‑covering and momentum trading in the name. (Those are market‑structure interpretations rather than directly reported facts.)

What Eoptolink actually does: optical modules at the heart of AI infrastructure

To understand why Eoptolink has become such a high‑beta proxy for China’s AI and data‑center boom, it helps to look at the company’s core business.

From telecom optics to AI data‑center plumbing

Eoptolink Technology Inc., Ltd.:

Designs, develops and manufactures optical modules used in optical communication systems. ^[19]
Its portfolio spans:
- Point‑to‑point optical modules for high‑speed data links;
- PON (passive optical network) modules;
- High‑speed, silicon photonics and coherent optical modules;
- New‑generation 800G LPO (Linear‑drive Pluggable Optics) and 1.6T products aimed at AI data centers. ^[20]
These products are used in broadband access networks, 4G/5G wireless backhaul, data centers, security monitoring and smart grid applications, among others. ^[21]

Press releases around the OFC 2025 conference highlight that Eoptolink has rolled out:

An “industry‑first” 800G optical transceiver for multicore fiber, and
A Gen2 1.6T OSFP / OSFP‑RHS transceiver family,
underscoring its push into the highest‑speed interconnects for AI supercomputing clusters. ^[22]

A separate analysis in The Edge Malaysia notes that both Eoptolink and Zhongji Innolight are regarded as leading makers of optical transceivers used to interconnect AI chips in large clusters, and have been identified as ecosystem partners by U.S. chip giant Nvidia. ^[23]

Fundamentals: triple‑digit profit growth and a “hot” valuation

Behind the share‑price surge is a set of extremely strong financial results:

In 2024, Eoptolink’s revenue reportedly rose to about ¥8.65 billion, an increase of roughly 179% year‑on‑year, while earnings surged about 312% to ~¥2.84 billion. ^[24]
For 1H 2025, Reuters‑based headlines from MarketScreener indicate that net profit was up around 355.7% year‑on‑year. ^[25]
For Q3 2025, another Reuters item reports that net profit climbed by about 205.4% year‑on‑year. ^[26]

Combining these figures with the latest market cap:

At ~¥343–345 per share, Eoptolink is valued around ¥330–340 billion, or roughly US$48 billion. ^[27]
The trailing P/E multiple around 44–45x and price‑to‑book ratio over 23x place it firmly in high‑growth, high‑expectation territory relative to many traditional hardware names. ^[28]

Earlier this year, in September 2025, a MarketScreener summary reported that Morgan Stanley downgraded Eoptolink from “Overweight” to “Underweight” with a price target of ¥255, well below current trading levels. ^[29]

That downgrade underscores the main valuation debate: even before the Pentagon headlines, some global brokers were signalling that expectations may already be more than priced in.

Local trading colour: AI hardware and CPO theme in the driver’s seat

Chinese financial media coverage today places Eoptolink at the heart of two powerful domestic themes:

Computing‑power hardware / AI infrastructure
- The midday A‑share wrap from 21st Century Business Herald highlighted strong performance in “computing power hardware” stocks, with Eoptolink’s turnover leading the market and names such as Zhongji Innolight and other hardware makers heavily traded. ^[30]
CPO (Co‑Packaged Optics) concept stocks
- A report on the “CPO concept” notes that co‑packaged optics names continued to rally, with Eoptolink among the key gainers, reflecting investor enthusiasm for next‑generation optical interconnects used inside AI data centers. ^[31]

Put simply, domestic narratives currently frame Eoptolink more as an AI‑infrastructure champion than as a geopolitical risk story, even while foreign media focus on the Pentagon letter.

Key risks investors are watching

For readers tracking Eoptolink’s Class A shares, several risk factors stand out:

Escalation of U.S. restrictions
- If the Pentagon’s recommendation leads not only to a 1260H designation but also to broader restrictions (for example, on U.S. investments or technology exports), the impact on Eoptolink’s access to global customers and advanced components could be more material.
- At this stage, however, the reported action is a classification step, not an immediate sanction. ^[32]
Valuation sensitivity
- With the stock up more than 300% in a year and trading on a mid‑40s earnings multiple, small changes in growth expectations or policy headlines can trigger sharp swings. ^[33]
- The Morgan Stanley target at ¥255—a level significantly below current prices—illustrates how sell‑side analysts are far from unanimous on fair value. ^[34]
Leverage and speculative participation
- Heavy margin‑financing inflows and large “main fund” purchases over recent days show strong appetite from leveraged and institutional traders. While supportive in a rally, this can amplify volatility if sentiment reverses. ^[35]
Sector‑wide cyclicality
- Optical components and data‑center hardware tend to move in multi‑year cycles linked to capex by cloud providers and telecom operators. A slowdown in AI server spending, or tighter export controls on AI chips, could spill over into demand for Eoptolink’s high‑end modules. ^[36]

Outlook: a battleground between AI optimism and geopolitical overhang

Putting it all together, Eoptolink’s Class A stock on 27 November 2025 sits at the intersection of three powerful forces:

Explosive fundamentals, with multi‑hundred‑percent profit growth driven by demand for high‑speed optical modules in AI data centers and advanced networks; ^[37]
Frothy valuations and intense trading activity, reflected in elevated P/E and P/B multiples, record trading turnover, and large margin‑financing balances; ^[38]
Rising geopolitical scrutiny, with today’s Pentagon‑related coverage adding a new dimension of regulatory and reputational risk, even if no immediate sanctions are in place. ^[39]

For now, the market’s verdict appears to be that AI‑driven growth and local liquidity are winning out over geopolitical concerns, at least in the short term. Whether that remains true will depend on:

How the U.S. ultimately updates and uses its Section 1260H list;
The trajectory of global AI‑compute capex;
And whether Eoptolink can sustain its current pace of innovation and earnings growth without running into supply‑chain or policy roadblocks.

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