YOFC (06869) rose over 8% intraday, with gains narrowing to 7.35% at press time to HK$36.2, recording a turnover of HK$554 million. The rally follows China Telecom's successful completion of the world's first hollow-core fiber co-transmission experiment exceeding 100km, setting a new industry benchmark and marking a milestone breakthrough in quantum-classical co-transmission technology. The experiment achieved four core technical indicators at globally leading levels.
Zhongtai Securities noted that AI computing demand will drive fiber optic growth in 2025, with data center interconnects rapidly upgrading to 800G/1.6T to support massive AI cluster training efficiency. Hollow-core fiber is considered the ultimate solution for AI cluster internal communication and ultra-low latency DCI. UBS views hollow-core fiber as having long-term potential, expecting 2-3 years for technological maturation and meaningful revenue contribution, positioning it as YOFC's strategic growth lever, though near-term profit impact remains limited.
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