Shares of TRIGIANT (01300) extended their rally on Friday morning, climbing over 9% on top of Thursday's 47% surge. At the time of writing, the stock was up 3.36% to HK$3.075, with turnover reaching HK$22.93 million.

The latest momentum comes after the company announced on September 11 its plan to acquire 100% of Qinghai Zhongli Fiber Optic Technology Co., Ltd. for RMB 455 million. The target company is the only high-tech enterprise in western China that integrates optical fiber preform and optical fiber R&D and production, boasting US-made ASI commercial OVD axial deposition systems and qualifying as a national-level specialized "Little Giant" enterprise. Its products have already secured certifications from the three major telecom operators and TÜV Rheinland.

Where investors should focus

Analysts at Everbright Securities noted that the target company possesses strong optical fiber preform and fiber production capabilities, positioning it to quickly capitalise on the growing demand for data center fiber optics. With fiber prices continuing to climb, the rigid expansion of preform production capacity is locking in a supply-demand gap. The market should keep an eye on leading manufacturers with integrated preform-fiber-cable production capacity. If this acquisition goes through smoothly, it is expected to complete TRIGIANT's "preform-fiber-cable" industry chain layout, opening up incremental growth potential for AI computing-related fiber optic products.