3Q26: solid growth driven by China CSPs AI investment

Accelink reported 3Q26 results on 25 October, with revenue and earnings growing strongly year-on-year in 9M26, translating into even faster 3Q26 growth; 9M26 net profit was in line with the company's profit alert. We think the solid growth was primarily driven by strong demand for optical transceivers and components in the AIDC market and large-scale upgrades towards 800G optical transceivers in the China market. GPM increased both y-y and q-q, mainly due to a higher penetration rate of datacom optical transceivers. 9M26 OCF turned negative, primarily due to increased procurement for inventory reserve, while prepayment increased sharply in order to lock in upstream components. As one of the leading optical transceiver and optical communication equipment suppliers in China, we think the company is well positioned to benefit from China CSPs' proactive AI infra investment. Its G2 plant was delivered in 2Q26 and capacity should gradually be released in 2H26F-1H27F, supporting solid top-lin