Hot Stock: Foreign Investors Buy for 7 Consecutive Sessions, Guang Huan Surges 26.98% on Volume and Price Gains

Optical communications manufacturer Guang Huan (3234-TW) benefited from a continuously increasing revenue contribution from CW lasers, achieving July revenue of NT$96.04 million, a 25.2% month-on-month increase and a remarkable 96.94% year-on-year growth. Last week, foreign investors injected capital with seven consecutive buying sessions. Combined with strong financial results from U.S. optical communications giant Lumentum (LITE-US), Guang Huan's stock price surged 26.98% for the week. Weekly trading volume spiked to 21,900 lots, with the share price rising above all moving averages and posting two consecutive green weekly candles.

Guang Huan's core business focuses on key optoelectronic and optical communication components, with product lines including VCSELs, FP/DFB lasers, and PIN photodetectors. These are applied in fiber optic communications, base stations, and cloud server-related products. Recently, the company has achieved double-digit year-on-year revenue growth for four consecutive months. Fundamentally, it has benefited from positive financial reports in the U.S. communications sector and rising demand for CPO (Co-Packaged Optics), strengthening its position both technically and in terms of investor sentiment.

Currently, Guang Huan's revenue share from CW laser contract manufacturing continues to rise in 2026, aligned with the development of the optical communications industry. This has improved product gross margins, and with effective control of operating expenses, the company is riding the explosive demand for AI computing power, which is driving growth in the optical transceiver module market. Cumulative consolidated revenue for the first seven months of the year reached NT$475 million, up 16.4% year-on-year.

Analysts point out that Guang Huan's core CPO development strategy centers on providing 'key laser light sources' and assisting customers in developing optical engines. As demand for 800G and 1.6T solutions increases, Guang Huan is expected to gradually expand its role and position within the CPO supply chain.

In addition to optical communications products, Guang Huan is actively developing intelligent sensing applications. Short-term goals include applications in smartphones, robotic vacuum cleaners, and biometric sensing, while long-term development targets the perceptual capabilities required for future robotics.