Shanghai, Feb 1, 2026, 08:36 GMT+8 — Trading has ended
- Shares closed Friday 10.9% higher at 248.43 yuan following a volatile session.
- Robust profit outlooks from optical-module rivals kept the “CPO” theme in play.
- Monday’s spotlight is on a private PMI reading set for Feb. 2, with traders watching to see if the rally can maintain momentum into the week.
Suzhou TFC Optical Communication Co., Ltd. Class A (300394.SZ) shares jumped 10.9% on Friday, closing at 248.43 yuan after hitting a session peak of 261.90 yuan. The stock, which trades on the Shenzhen Stock Exchange, had closed the previous day at 224.00 yuan. Mainland markets will be closed on Sunday.
Suzhou TFC’s latest move is significant because it’s part of the packed “CPO” sector — short for co-packaged optics, which places optical links nearer to chips to speed data transfer inside AI data centres. A mainland media report noted that “CPO concept” stocks surged Friday, with Suzhou TFC hitting a new intraday high as investors chased earnings momentum. 21 Economic Network
Late Friday, Zhongji Innolight forecasted 2025 net profit between 9.8 billion and 11.8 billion yuan. Eoptolink Technology put its estimate slightly lower, at 9.4 billion to 9.9 billion yuan. Both firms pointed to robust investment in computing infrastructure and a richer mix of high-speed optical modules. This trend has generally buoyed upstream optical components companies alongside the major players.
Suzhou TFC set the tone for its earnings earlier in the season. In a Jan. 21 filing, it forecasted 2025 net profit attributable to shareholders between 1.88 billion and 2.15 billion yuan, marking a 40% to 60% jump from the previous year. The company cited AI adoption and global data-centre expansions as key drivers boosting demand for high-speed optical devices, though a foreign-exchange loss increased finance costs.
Macro is the other piece of this puzzle, and it’s not straightforward. China’s official factory PMI fell below 50 in January, hitting 49.3, Reuters reports. Ting Lu from Nomura warned that “Beijing will have to do much more in coming months to deliver an annual GDP growth rate above 4.5% in 2026.” Meanwhile, Huo Lihui, a statistician at the National Bureau of Statistics, noted some manufacturers face a seasonal slowdown in January and demand is still weak. Reuters
A PMI reading under 50 indicates contraction. The official data revealed the production index held above 50 at 50.6, but new orders dipped to 49.2 — a mixed signal that could rattle confidence even as investors pile into AI-related hardware stocks.
The run-up leaves scant margin for error. Should audited results fall short of guidance’s lower bound, or if the post-holiday order flow weakens, high-multiple optics stocks could easily surrender their gains.
Traders will be eyeing Monday’s open to see if the sector can maintain Friday’s highs and if buying momentum picks up after the weekend gap. A Reuters poll points to the private RatingDog PMI release on Feb. 2, offering an early glimpse of demand as the new week kicks off.
