Movement Alert|YOFC Falls 5.94% in Regular Trading, Continued Pullback After Record High as Extreme Valuation Weighs

Market Focus06-08

On June 8, YOFC (Yangtze Optical Fibre and Cable) declined 5.94% in regular trading, trading at 234.0 HKD/share, with trading volume of 9.62 billion HKD. The stock continues to retreat following a sharp reversal from record highs.

The selloff extends a broader correction that began after the company's A-share stock surged to an all-time high of 487 yuan before plunging nearly 10% in a single session. The stock had triggered an abnormal trading volatility alert after three consecutive trading days of cumulative price deviation exceeding 20%, with aggregate turnover reaching 25.987 billion yuan during that period. Over the past year, the stock has surged more than 12-fold from approximately 30 yuan.

While fundamental catalysts remain intact — including AI data center-driven fiber demand, optical fiber preform prices surging approximately 550%, and the company's recent inclusion in the FTSE China 50 Index — the dynamic PE ratio exceeding 195x and PB ratio above 12x reflect extreme valuation levels. Massive accumulated profit-taking pressure and cautious short-term sentiment have driven capital to lock in gains at elevated levels.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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