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Demand for fiber optic cable in China is expected to increase substantially

July 20, 2023

Because the listed companies have successively released semi-annual reports, there have been many recent articles on the domestic fiber optic cable market. Sina's special information stocks have an article titled "Special Information: Half-year Performance Near Last Year". Since the special semi-annual report has not yet been issued, the actual results are still unknown. However, on July 12, the company announced that it expects to accumulate a net profit of RMB 35,775,500 to RMB 38,160,500 in January-June 2013, an increase of 50% to 60% year-on-year. However, this surge in net profit is not due to fiber optic cable. The growth of the market was mainly due to the 61.5% equity transfer of Guangxi Jiguang, an electrolytic aluminum business.

However, there can still be high expectations for the fiber optic cable market this year. An article in the Shanghai Securities News on June 28 stated that “from the first wave of “reconnaissance and design services” to the second wave of “communications masters”, the bidding for China Mobile’s 4G network has already gone through the first two steps of the procurement tender. The next wave will be the third wave of fiber-optic cable, and information from the industry says that China Mobile's fiber optic cable bidding is expected to start next month.Telecom's 2013 tender may also start soon, and demand for fiber optic cable is expected to increase substantially. Added.” The time has passed July and the news of these tenders has not yet been implemented. However, it is believed that there is still a great possibility of implementation in the second half of the year.

In April, China Information Industry Online had a summary article on China's fiber optic cable market in 2012. A data chart derived from Guosen Securities was presented in this article, listing the demand for fiber optic cables from operators over the years since 2006. From the chart, we can clearly see the significant role of 3G license issuance in 2008-2009 for the fiber optic cable market. In contrast, 2012 is also a good year for the optical fiber and cable market. This may be due to the broadband construction. Maybe there is also the impact of Wei's total cable life expectancy. From this chart, if the 4G construction starts, it may not be impossible for China's optical fiber cable market to re-emerge a few years ago waiting for customers to pull goods. From this chart, we can see that since 2006, even without major benefits, China's fiber optic cable market can still maintain a growth rate of more than 10%. When this growth rate will start to slow down, it is also an issue of great interest. It is estimated that there will be some correlation with the growth rate of the Chinese economy. If there is time, we may be able to look at the relationship between the two from a statistical point of view.

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Author:

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October 14, 2022

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