Stock Track | YOFC Soars 5.63% Intraday on Major Shareholder Transfer and Upbeat Profit Outlook

Stock Track05-12

YOFC's stock price surged 5.63% during intraday trading on Tuesday, marking a significant upward movement.

The rally follows news of a major shareholder transferring a portfolio worth HK$21.21 billion, representing 2.05% of the company's shares, from HSBC to Citibank. Concurrently, analysts from Huatai Securities highlighted that the company's first-quarter profit growth significantly outpaced revenue growth, primarily driven by a substantial improvement in gross margin.

Further optimism stems from the month-on-month upward trend in fiber optic prices during the quarter and the expectation that high-priced orders, set to be recognized starting in the second quarter, will accelerate profit elasticity. The company's performance is anticipated to see significant enhancement, driven by rising demand in its core fiber optic cable business and diversified operations such as optical interconnect components.

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