Jiangsu Zhongtian Technology (A) Management call takeaways: Concerns over new fiber expansion overdone

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Jiangsu Zhongtian Technology (A) Management call takeaways: Concerns over new fiber expansion overdone

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Jiangsu Zhongtian Technology (A)

Management call takeaways: Concerns

over new fiber expansion overdone

Reiterate Rating: BUY | PO: 73.30 CNY | Price: 61.29 CNY

Fiber upcycle intact, new capacity manageable 28 June 2026

We reiterate Buy on Zhongtian after hosting its Board Secretary Mr Hu during our AI Equity

Infrastructure Conference on 26 Jun. We think the new fiber expansion in 2027 looks

more to meet incremental demand rather than reversing the tight supply situation,

Key Changesdriving optical fiber prices higher for longer. Zhongtian can see further upside from

higher specialty fiber mix and direct supply to CSP clients in North America. We expect (CNY) Previous Current

1H26 positive profit alert +60% YoY to be announced by mid-July to confirm the upcycle, Price Obj. 57.00 73.30

and see 20x PE as attractive to buy on weakness from new capacity concerns. 2026E EBITDA (m) 9,080.1 10,544.4

Expect optical fiber upcycle to stay at least in 2028 2027E2028E EBITDAEBITDA (m)(m) 13,448.415,229.6 16,666.320,227.9

ZTT expects the optical fiber upcycle to stay at least through 2028 driven by rising AI

demand. China’s AI demand could rise 10x to 50mn fkm in 2026 and further doubling in Gary Tsang >>

2027, and demand from North America could reach 80mn fkm in 2026 and at least Research Analyst

Merrill Lynch (Hong Kong)

100mn in 2027 (peers expect doubled). The fiber supply is so tight now that ZTT said it +852 3508 6825

had to turn down Corning’s fiber order. While there has been new expansion announced, gary.tsang@bofa.com

including new entrants like Han’s Laser and Hoshine, ZTT believes the capacity takes Charlotte Xia >> Research Analyst