CITIC Securities: The slowdown in CPO pace suggests that NPO may accelerate; we remain optimistic about the optical communication sector.

According to a research report by CITIC Securities, a US semiconductor research firm, SemiAnalysis recently released a report stating that demand for copper cables and pluggable optical modules remains strong in the long term. The report suggests that mass production of CPO (Consumer-to-Poly) modules may be delayed until 2028 or even 2029, implying that NPO (Non-Poly) development may accelerate. CITIC Securities believes that both CPO and NPO primarily target the scale-up market, representing a growth market for pluggable optical module suppliers. Traditional pluggable optical module companies can deeply participate in this growth market. While the optical communication sector has recently experienced adjustments due to significant gains and market sentiment, CITIC Securities believes this will not shake the industry's fundamentally positive trend and maintains an optimistic outlook on the overall optical communication and CPO/NPO industry chain.