On Wednesday, YOFC surged 9% against the market trend during the session, accumulating a year-to-date increase of more than 340%. On the news front, the fiber optic industry has recently shown a high-growth trend characterized by "simultaneous increases in product volume and price." According to reports, one domestic fiber optic manufacturer saw its fiber optic production and sales volume grow nearly fivefold year-on-year in the first quarter, with product prices experiencing explosive increases. The price of G.657.A2 fiber surged from 32 yuan per core kilometer last year to 240 yuan, a rise of 650%. Another company reported a year-on-year increase of over 35% in production and sales volume for the first quarter, with overseas sales growth exceeding 55%.
On the supply side, fiber preforms have been in short supply since the beginning of this year, with global production capacity nearing full utilization. The preform production lines of China's four major fiber optic leaders are all operating at full capacity. Given that the expansion cycle for preform production is approximately two years, once the supply-demand tension is established, it is likely to persist for an extended period. This supports the maintenance of high prices for fiber optic cables and provides strong momentum for the stock prices of related companies in the industry, such as YOFC.
