Jiangsu Zhongtian Technology (A): Reiterate Buy with stronger-for-longer optical upcycle

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Jiangsu Zhongtian Technology (A): Reiterate Buy with stronger-for-longer optical upcycle

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Jiangsu Zhongtian Technology (A)

Reiterate Buy with stronger-for-longer

optical upcycle

Reiterate Rating: BUY | PO: 57.00 CNY | Price: 49.27 CNY

Reiterate Buy on optical and subsea cable boost 11 June 2026

We are more confident about the optical fiber upcycle with prices staying elevated at Equity

least for the next 12 months. Zhongtian’s data center fiber order win suggests margin

can see further upside from rising high-margin products. We lift earnings (see Exhibit 5

Key Changesfor more details), and our DCF-derived PO to RMB57 from RMB47.50, to account for

higher optical earnings reaching almost half of 2027E net income. (CNY) Previous Current

Price Obj. 47.50 57.00

2026E EBITDA (m) 7,997.8 9,080.1Tight optical fiber supply will persist

May spot price for G652D is up 5x YoY but largely stable from March level. Recent 2027E EBITDA (m) 11,219.2 13,448.4

investor feedback suggests the narrative of optical fiber upcycle has shifted from 2028E EBITDA (m) 12,777.1 15,229.6

further rally in spot price to how sustainable the elevated price will stay. Our European

team has a new demand-supply model forecasting the tight market conditions will stay Gary Tsang >>

in the coming years, driven by AI data centre buildout and emerging applications such as ResearchMerrill LynchAnalyst(Hong Kong)

drones, while supply growth is unlikely to keep pace in the near term despite expansion. +852 3508 6825

gary.tsang@bofa.com

Rising spot and high-margin product exposure CharlotteResearch AnalystXia >>

Zhongtian’s recent RMB1.5bn fiber new orders from local AI data center confirms its Merrill Lynch (Hong Kong)

charlotte.xia@bofa.com

capability to step up in specialty fiber offerings.