HK Market Moves | YOFC (06869) Falls Over 4%, Stock Price Halved From June Highs; Fiber Optic Expansion Wave May Erase Supply Gaps

Stock News07-24 14:40

YOFC (06869) has declined more than 4%, and notably, the stock's current price has been cut in half from its June high. As of the time of writing, it is down 4.37% to HK$120.3, with a turnover of HK$2.088 billion.

On the news front, amid a significant surge in fiber optic cable prices and a marked improvement in investment returns, companies along the industry chain have begun expanding production of optical preforms and specialty fibers, also attracting some firms to enter the sector from other industries. Since the start of the year, companies including Hengtong Optic-Electric, FiberHome Telecommunication, Far East Smarter Energy, Tongding Interconnection, Hoshine Silicon Industry, and Han's Laser have initiated optical preform expansion plans.

Analysts at Credit Suisse believe that while AI and geopolitical conflicts are driving fiber optic demand and the US supply chain faces severe shortages, the significant capacity expansion in China and globally will gradually eliminate the shortage. YOFC may face the risk of losing market share, with its earnings potentially peaking cyclically in 2026 to 2027.

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