Recently, the industry has witnessed a fresh wave of price hikes across various categories of optical fibers. The demand for AI-driven optical fibers is projected to surge, potentially doubling within the next two years. This growth is further fueled by robust demand in specialized sectors, notably oceanic communications. As a frontrunner in the industry, Hengtong Optic-Electric is poised to reap performance benefits over the forthcoming two-year period. Presently, the company is expediting the construction of its AI-advanced optical fiber center. By 2025, it anticipates achieving significant milestones in the core technology of air-core optical fiber cabling. Additionally, Hengtong Optic-Electric has joined forces with China Unicom to roll out the nation's inaugural commercial air-core optical fiber cable line. Concurrently, the company is ramping up efforts on its expansion project for the AI-advanced optical fiber material R&D and manufacturing center, slated for completion in 2026. This strategic move is expected to bolster its capacity delivery capabilities within the AI domain. Currently, the A-share stock price reflects a PE ratio of 20/15/13 times, prompting Capital Securities (Hong Kong) to issue a 'Buy' recommendation.