JPT’s Reckoning in the CPO Storm
The Shanghai‑listed Shenzhen JPT Opto‑Electronics Co. Ltd. has been dragged into a broader sell‑off of the CPO (copper‑plasmonic‑optics) cluster. On the afternoon of 13 Feb 2026, the stock fell more than five per cent, mirroring a pan‑market decline that saw long‑chip innovators such as 长芯博创 tumble over ten per cent. The fall is a clear symptom of investor fatigue toward the high‑valuation, speculative nature of the CPO sector.
JPT’s own fundamentals cannot justify the market’s current assessment. The company’s share price of 226 CNY sits well below the 52‑week high of 234.02, yet the price‑earnings ratio of 53.91 suggests investors are paying a premium that is not supported by earnings growth. With a market capitalisation of 20.4 billion CNY and an earnings base that is still expanding, the valuation appears stretched, especially when the sector is already under pressure from tighter supply of optical modules and an influx of competing technologies.
Sector‑wide Weakness
The CPO concept, once hailed as the next frontier for high‑speed data transmission, has lost momentum. According to 每日经济新闻 on 13 Feb, the concept’s early‑trading strength evaporated, with several CPO‑linked names including 光库科技, 杰普特, and 天孚通信 all falling beyond the five‑per‑cent mark. This decline coincides with a broader narrative that the market is turning away from speculative optical‑module plays toward more grounded, revenue‑generating businesses.
The situation is amplified by the fact that the CPO bubble was fueled by expectations of a 3.2 Tbit/s market penetration surpassing fifty per cent—a figure that may have been overstated. A 中信建投 report on 10 Feb warned that the AI‑driven demand for optical modules may be overstretched, with even leading CSP vendors cautioning about supply constraints. If the projected growth stalls, the valuations of companies like JPT could deteriorate further.
Funding Pressure and Leverage Concerns
In the same period, the 科创板 (STAR Market) saw a significant increase in financing balance, rising by 6.03 billion CNY on 12 Feb. While this influx of leveraged funds may temporarily buoy the market, it also introduces volatility. JPT, which is positioned within the tech‑heavy, high‑risk cohort, is exposed to sudden shifts in investor sentiment. The widening gap between high‑growth expectations and realistic cash‑flow generation could trigger further sell‑off as margin calls or liquidity constraints materialize.
Moreover, the STAR Market’s emphasis on leveraged funding has created a precarious environment where companies with thin earnings buffers are forced to meet aggressive repayment schedules. Should JPT’s earnings growth falter—an eventuality that the current P/E ratio warns against—the company could find itself unable to service its debt, compounding the downward pressure on its stock.
Market Outlook and Strategic Imperatives
Given the current trajectory, JPT must confront two stark realities:
Re‑evaluate Valuation: The market’s willingness to sustain a 53.91 P/E is fragile. A disciplined recalibration of revenue forecasts, cost structures, and margin expectations is essential to align the stock price with intrinsic value.
Diversify Revenue Streams: Dependence on the CPO niche leaves JPT vulnerable to sectoral swings. Expanding into adjacent optoelectronic segments—such as 1.6T/3.2T modules or even non‑optical precision instrumentation—could stabilize earnings and broaden investor appeal.
If JPT can convincingly address these issues, it may regain traction. Until then, the stock will likely continue to serve as a barometer for the wider CPO market’s speculative excesses, and investors should remain wary of its current valuation bubble.
