AI Wave Drives Strong H1 Results for Many STAR Market optical‑communications Companies

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STAR Market optical‑communications companies posted unusually strong H1 2025 results that investors and founders should read now.

2025.09.02

Overview

14 companies listed on the STAR Market (Ke Chuang Ban 科创板) in China’s optical‑communications sector reported notably robust first‑half 2025 results.

Aggregated reporting shows both revenue and profit acceleration across the group.

Nearly 80% of the tracked firms posted positive growth in net profit attributable to parent company shareholders.

Key aggregated figures (H1 2025)

• Total revenue (14 STAR Market optical‑communications companies):

  ¥25,104,000,000 RMB ($3.49 billion USD).

• H1 2024 revenue (same group):

  ¥19,475,000,000 RMB ($2.70 billion USD) — year‑over‑year change: +28.9%.

• Total net profit (14 companies):

  ¥4,765,000,000 RMB ($662.01 million USD).

• H1 2024 net profit (same group):

  ¥2,883,000,000 RMB ($400.42 million USD) — year‑over‑year change: +65.3%.

Conversion note: USD conversions in this article use an exchange rate of 1 USD = ¥7.20 CNY (¥1 = $0.1389) for consistency with the reporting date 2025.09.02.

Standout companies and results

Several names in the group delivered exceptional top‑line and bottom‑line moves.

• Shijia Guangzi (Shijia Guangzi 仕佳光子) — H1 revenue: ¥993,000,000 RMB ($137.92 million USD), up 121.12% year‑over‑year.

  Net profit attributable to shareholders: ¥217,000,000 RMB ($30.14 million USD), up 1,712% year‑over‑year.

  Revenue from its optical chips and devices was ¥700,000,000 RMB ($97.22 million USD), up 190.92%.

• Dingtong Keji (Dingtong Keji 鼎通科技) — reported net profit: ¥115,000,000 RMB ($15.97 million USD), up 134.06%.

• Changyingtong (Changyingtong 长盈通) — reported net profit: ¥29,000,000 RMB ($4.03 million USD), up 91.82%.

• Canqin Keji (Canqin Keji 灿勤科技) — reported net profit: ¥51,000,000 RMB ($7.08 million USD), up 51.94%.

What’s behind the growth

Two clear drivers emerge from company reports and market commentary.

• AI‑driven surge in computing and data‑center traffic.

  The rapid expansion of large‑model AI and AI inference workloads is lifting demand for high‑bandwidth, low‑latency optical interconnects and modules.

• Stronger product mix and higher‑value shipments.

  Several firms reported fast growth in optical chips, optical modules and specialized cabling materials — categories that typically carry higher gross margins than commodity fiber products.

What this implies for margins and cash flow:

• When revenue growth is driven by higher‑value optical chips and modules, gross margins often expand.

• Firms with a tilt toward chips and modules may see sharper operating‑leverage benefits as volumes scale against fixed R&D and factory costs.

Market forecasts cited

Industry forecasts referenced in company reporting point to sustained expansion in the Ethernet optical‑module market.

One firm cited expects mid‑to‑late‑decade revenues to maintain double‑digit annual growth, with the market expanding materially through 2030.

For investors this suggests a multi‑year demand tailwind tied to AI infrastructure build‑outs and broader hyperscale data‑center activity.

Stock performance (2025 YTD) — STAR Market optical‑communications group

Earnings strength translated into strong share‑price moves across the cohort.

• Shijia Guangzi (仕佳光子) — year‑to‑date share price gain up to approximately 391.63% (highest among the group).

• Dingtong Keji (鼎通科技), Youfang Keji (Youfang Keji 有方科技) and Changyingtong (长盈通) — all more than doubled in the period, with gains of roughly 188.13%, 163.20% and 136.54%, respectively.

• Other notable gainers (>50%): Dekeli (德科立), Sinan Daohang (司南导航), Yinghantong (映翰通), Canqin Keji (灿勤科技) and Kunheng Shunwei (坤恒顺维).

Dividends and shareholder returns

After policy emphasis in 2024 on predictable dividends, interim cash distributions have become more common among A‑shares.

• Market aggregate:

  As of 2025‑08‑30, 810 A‑share companies disclosed 2025 interim cash‑dividend plans totaling ¥642,808,000,000 RMB ($89.28 billion USD).

  This represents about a 15.06% increase versus the prior year and is a record high.

• Company examples from the optical‑communications group:

  • Weisheng Xinxi (Weisheng Xinxi 威胜信息) — proposed interim dividend: ¥0.25 per share (¥2.5 per 10 shares), total payout ~¥122,000,000 RMB ($16.94 million USD); payout ratio ~40%.

  • Dingtong Keji (鼎通科技) — proposed interim dividend: ¥2.0 per 10 shares, total payout ¥27,840,000 RMB ($3.87 million USD); equivalent to ~24.13% of H1 net profit.

  • Dekeli (德科立) — proposed interim dividend: ¥1.0 per 10 shares, total payout ~¥15,830,000 RMB ($2.20 million USD).

• Total Companies Disclosing Plans: 810
• Total Interim Cash Dividends: ¥642,808,000,000 RMB ($89.28 billion USD)
• Year-over-Year Increase: +15.06%
• Status: Record high for interim dividends

Expert view and outlook

Investors and analysts consistently point to AI compute as the core investment thesis behind the optical‑communications rally.

As model sizes and deployment scenarios proliferate, demand for high‑speed optical interconnects — both inside data centers and across network edges — is expected to sustain growth for optical‑component makers.

Research banks and industry analysts forecast continued demand growth for AI hardware and optical communications products into H2 2025 and beyond, driven by expanding inference workloads and more diversified deployment forms.

Risks to watch

• Execution risk: scaling production of high‑end optical chips and modules to meet rapid demand while maintaining yields and margins.

• Market cyclicality: downstream inventory adjustments from data centers and cloud providers could create volatility in orders and ASPs.

• Valuation and sentiment risk: sharp share‑price runs may invite heightened volatility and profit taking, increasing downside risk for late buyers.

What investors and founders should track next

• Order books and backlog: rising backlog and multi‑quarter order visibility are signs demand is durable rather than inventory‑driven.

• Product mix and ASPs: watch how much revenue comes from optical chips and modules versus lower‑value fiber products.

• Gross margin trends: improving margins indicate successful scaling of higher‑value product lines.

• Capital spending by hyperscalers: announcements of AI clusters and inference deployments often precede big optical‑module orders.

• Interim dividend announcements: these can signal management confidence in cash flows and act as a shorter‑term support for share prices.

Bottom line

The H1 2025 results from STAR Market optical‑communications companies show AI demand driving a meaningful cyclical upswing in both revenue and profitability.

Investors should balance the attractive growth and margin dynamics with execution, inventory and valuation risks going into H2 2025.

STAR Market optical‑communications firms remain a core way to play the AI‑compute infrastructure theme in China, while monitoring the near‑term risks described above.

References

• AI浪潮带动 光通信行业多家科创板公司上半年交出亮眼业绩 – 财联社
• AI浪潮带动 光通信行业多家科创板公司上半年交出亮眼业绩 – 东方财富
• Ethernet Optical Module Market Forecast – LightCounting

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