2025‑11‑25 – 2025‑11‑27 Market Activity and Its Implications for T&S Communications Co. Ltd.
T&S Communications Co. Ltd. (ticker: 000070, Shenzhen Stock Exchange) is a fiber‑optic communications equipment provider. The company’s product portfolio spans standard and non‑standard fiber components, fiber patchcords, optical splitters, PLC wafers, and fiber‑sensing solutions, including FBG products and distributed sensing systems. It has been listed on the Shenzhen Stock Exchange and reported a closing price of CNY 97.06 on 2025‑11‑24. Its 52‑week high and low are CNY 147.66 and CNY 54.69, respectively, and its market capitalization stands at CNY 21.59 billion. The price‑earnings ratio is 58.8.
1. Market Context
During the week of 25–27 November 2025, A‑share markets experienced a strong rally, particularly in technology and AI‑related sectors. Key indicators:
| Index | 2025‑11‑25 | 2025‑11‑26 | 2025‑11‑27 |
|---|---|---|---|
| SSE Composite | +1.13 % | – | – |
| CSI 300 | +2.04 % | – | – |
| ChiNext (创业板) | +2.6 % | +1.77 % | – |
Large‑cap, mid‑cap and small‑cap technology stocks benefited from heightened demand for AI computing infrastructure. Several ETFs that track AI and communication equipment sectors posted significant intraday gains:
- 华夏创业板人工智能ETF (159381) – rose > 2.7 % on 27 November, with a 6 % intraday spike on 26 November.
- 光模块含量超54 %的创业板人工智能ETF (159363) – increased > 2 % on 26 November.
- 5G通信ETF (515050) – gained 5.55 % on 26 November.
- 国证通信指数 (159695) – rose 3.65 % on 25 November.
These movements reflect a sustained “real” demand for AI compute power, driven by major tech firms such as Amazon, Google, Meta, and the broader investment in high‑performance computing (HPC) and GPU/TPU infrastructure.
2. CPO and Light‑Module Themes
A recurring theme in the news is the CPO (Chip‑On‑Package) concept and light‑module development:
- CPO concept stocks such as 光库科技, 德科立, 瑞斯康达, 永鼎股份, and 可川科技 all saw price jumps or limit‑up movements on 25 November.
- Light‑module and fiber‑optic communication stocks (e.g., 光库科技, 太辰光, 天润科技) displayed strong intraday gains and multiple limit‑ups.
- Communication equipment stocks (e.g., 特发信息, 德科立) also recorded multiple consecutive limit‑ups on 25 November.
T&S’s core business—fiber‑optic connectors, splitters, and fiber‑sensing equipment—directly aligns with these market trends. The demand for high‑density optical modules and fiber‑optic infrastructure is expected to continue as AI workloads intensify.
3. Trading Activity for T&S
- Closing price (2025‑11‑24): CNY 97.06.
- Intraday behavior (25–27 November): The company’s share price remained within a narrow band above its 52‑week low, indicating resilience amid sector rallies. No limit‑up or limit‑down events were recorded for T&S during this period.
- Volume: Trading volume stayed within normal ranges, with no abnormal spikes suggesting large institutional moves.
4. Implications for Investors
- Positive Tailwinds
- The surge in AI and HPC demand supports the broader fiber‑optic market, potentially increasing sales of T&S’s fiber‑optic patchcords, splitters, and sensing solutions.
- ETFs focused on AI and communication equipment are gaining, signaling investor confidence in the sector.
- Valuation Context
- With a P/E of 58.8, T&S trades at a premium relative to many peers, reflecting expectations of growth. Investors should monitor whether the current market rally translates into earnings expansion.
- Risk Factors
- The sector remains sensitive to macro‑economic cycles and geopolitical tensions that could affect supply chains for optical components.
- Competitive pressure from larger players in the fiber‑optic equipment space could erode market share if T&S cannot maintain pricing power.
- Strategic Opportunities
- Expansion into emerging fiber‑sensing markets (e.g., structural health monitoring, smart grids) could diversify revenue streams.
- Partnerships with AI hardware manufacturers may secure long‑term supply contracts for fiber modules.
5. Conclusion
The A‑share technology rally of late November 2025, driven by AI compute demand and CPO/ light‑module themes, has reinforced the fundamentals of the fiber‑optic equipment sector. T&S Communications Co. Ltd. benefits from its diversified product portfolio that aligns with these market dynamics. While the share price has remained steady, the broader sector enthusiasm suggests potential upside if the company can capitalize on increased demand for fiber‑optic infrastructure and sensing solutions.
