YOFC (06869) Surges Over 5% on Strong Global Fiber Demand, Analysts Foresee Accelerated Profit Growth

Stock News05-18

Shares of YOFC (06869) rose more than 5%, gaining 5.11% to HK$23.44 by the time of writing, with a turnover of HK$1.342 billion. Industry reports indicate that exports of fiber optic cables and optical modules saw double-digit year-on-year growth in the first quarter, with many companies having export orders scheduled through 2028. In early May, a fiber optic manufacturer in Nantong, Jiangsu, reported that the price of its specialty fiber product (G.657.A2 fiber) had increased tenfold within a year, yet demand continues to outstrip supply. Order volumes have grown fourfold year-on-year, and customers are required to pay deposits in advance to secure factory production capacity. Huatai Securities noted in a research report that fiber prices showed a month-on-month upward trend in the first quarter of 2026, with the company's delivery structure still including some low-priced long-term and bulk procurement orders. As higher-priced orders are set to be recognized starting in the second quarter, the firm anticipates an accelerated release of profit elasticity. Driven by the rising demand in the core fiber optic cable business and diversified operations such as optical interconnection components, the company's performance is expected to see significant improvement.

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