Chaozhou Three‑Circle Group Co Ltd: Riding the Fiber‑Optic Surge in the AI‑Driven Era
In the early trading session of 20 May 2026, the Shenzhen Stock Exchange witnessed a pronounced rally in the fiber‑optic sector, a movement that reverberated through the broader electronic equipment and components market. Chaozhou Three‑Circle Group Co Ltd (CCTC), a long‑standing player in the production of high‑precision optical and ceramic components, found itself at the centre of this momentum. The company’s stock closed at ¥98.47, an increase that propelled its price above the 52‑week high of ¥105 set earlier that month. With a market capitalization of 189 billion CNY and a price‑earnings ratio of 65.78, CCTC’s valuation reflects the sector’s newfound premium, driven by the escalating demand for fiber‑optic infrastructure in artificial‑intelligence (AI) data centres.
1. Fiber‑Optics: The New “Big National Asset”
The news released by Stock East Money on 20 May 2026 highlighted that the fiber‑optic concept sector had rebounded from a recent trough. Notably, Three‑Circle Group was among the stocks that surged, joining peers such as Sifang Group and Baidu‑led telecom firms. Analysts emphasised that AI’s rapid expansion has turned optical fibre into a “big national asset.” The global data‑center boom has amplified the requirement for high‑speed, high‑capacity fibre links capable of handling the data traffic generated by AI workloads. Industry estimates suggest that the amount of fibre needed for AI data centers could be 36 times that required by conventional CPU‑based servers.
This surge in demand is reflected in the company’s product portfolio. Three‑Circle Group manufactures a broad range of fibre‑optic components—including ceramic and non‑standard ferrules, MT ferrules, fibre optic connectors, and fibre stubs—as well as high‑performance ceramic substrates and optoelectronic transistor packages. These products are integral to the construction and optimisation of optical links in AI data‑center infrastructures. The company’s capacity to supply both domestic and international markets positions it to benefit directly from the expanding global fibre‑optic orders that are now projected to stretch into 2027.
2. Global Supply Constraints and Export Growth
According to reports from DigiTimes and the Chinese Ministry of Commerce, China’s domestic fibre‑optic output reached 3.72 billion fibre kilometres in 2025, accounting for 56.3 % of world production. Moreover, the country’s exports of fibre‑optic cable in March 2025 totaled US$245 million, a 263.8 % year‑on‑year increase, with the average export price rising by 204 %. This growth is underpinned by three primary drivers:
- AI data‑center expansion—requiring a vast network of optical interconnects.
- Geopolitical shifts—prompting demand for specialised fibre applications such as drone communications.
- Sustained overseas infrastructure projects, especially in the United States and Europe.
Three‑Circle Group’s product line, which includes high‑grade connectors and ceramic substrates, is well‑suited to meet the premium segment of this export market. The company’s 2026 earnings outlook reflects this trajectory, with analysts noting that the firm’s export‑to‑domestic sales ratio is expected to rise, thereby supporting revenue growth even as domestic demand stabilises.
3. Capitalisation of the AI Ecosystem
While the fibre‑optic sector gains momentum, the broader AI ecosystem is also experiencing a wave of investment. Stock East Money reported that Chinese telecom operators—China Mobile, China Unicom, and China Telecom—have introduced Token (word‑unit) packages to retail customers. These packages facilitate token‑based AI services, providing a new revenue stream that indirectly supports demand for fibre infrastructure. Simultaneously, leading cloud service providers such as Alibaba and Tencent are increasing capital expenditures on AI data‑center construction, further reinforcing the need for high‑performance optical links.
For Three‑Circle Group, these developments translate into a more robust pipeline of orders from large data‑center operators and telecom giants. The company’s strategic focus on both fibre‑optic components and high‑performance ceramic products aligns with the dual‑need for connectivity and processing capability in AI workloads.
4. Investor Sentiment and Market Dynamics
On 19 May 2026, the Chinese stock market experienced a pronounced rally in the “calc‑power industry chain” sector. The day’s trading data showed that the CPO and PCB segments saw cumulative gains of around 1.5 %, while specific optical‑component stocks—such as Gongxin Technology and Jianshi Electronics—topped the list of winners. In the broader context, the electronics sector attracted ¥17 billion of net inflows, the highest among all sectors, indicating heightened investor confidence in technology stocks. Notably, Three‑Circle Group’s share price advanced in line with this trend, reflecting the market’s perception that the company is well‑positioned to capture the benefits of the AI‑driven fibre‑optic boom.
Analysts at East Securities and Open Securities have highlighted that leading companies in the fibre‑optic chain possess higher manufacturing capacities and stronger price‑setting power. They argue that as supply tightness intensifies, these firms—especially those that are already at full capacity—are likely to see margin expansion. Three‑Circle Group’s production facilities, which cover both fibre‑optic connectors and ceramic substrates, are already operating at or near full utilisation, suggesting that the company may reap the benefits of this supply‑side squeeze.
5. Future Outlook and Strategic Imperatives
Looking ahead, the 2026‑2027 period is expected to see an expansion of the supply‑demand gap for fibre‑optic products by approximately 15 %, according to Huatai Securities. The company’s exposure to high‑quality optical components positions it to capture the premium segment of the market as new data‑center projects demand tighter, higher‑performance solutions. Moreover, the firm’s existing capability to produce anode‑supported solid‑oxide fuel cells (SOFC) and ceramic metal products could diversify revenue streams in the new‑energy sector, a growth area that complements the company’s core electronic equipment business.
To sustain this trajectory, Three‑Circle Group must continue to invest in R&D to enhance the performance of its fibre‑optic connectors and to broaden its product range to meet the evolving specifications of AI data‑center hardware. Expanding its international sales network will also be critical, as overseas orders are projected to reach a peak around 2027. Finally, maintaining stringent quality control and compliance with international standards will ensure that the company remains competitive in a market that increasingly prioritises reliability and efficiency.
In summary, Chaozhou Three‑Circle Group Co Ltd has positioned itself at the nexus of the AI‑driven fibre‑optic revolution. The confluence of escalating demand for high‑speed optical links, expanding global export markets, and a supportive investment climate has catalysed the company’s recent performance. With a robust product portfolio and strategic focus on high‑value components, Three‑Circle Group is poised to capture significant upside in the coming years.
