HK Stock Market Move | YOFC(06869) rose more than 7% in early trading, driven by AI to drive high-speed copper cable demand, completing the acquisition of Broadex Technologies in 22 years.

In the morning session, YOFC (06869) rose more than 7%, up 4.26% as of the time of publication, to 11.74 Hong Kong dollars, with a trading volume of 43.6656 million Hong Kong dollars. On the news front, in recent times, many CSP manufacturers have proposed high-density cabinet solutions to improve computing power and connectivity efficiency, with serdes upgrading from 112G to 224G high-speed copper cables and components as the most cost-effective solution in the short term, expected to be widely used in the Scaleup and Scaleout sectors. EB SECURITIES noted that with Google, Broadcom AWS, and Microsoft tending to use self-developed ASICs and Ethernet architecture for networking, the demand for active copper cables is expected to see high growth, with the high-growth trend expected to continue for at least 2 to 3 years. It is worth noting that on April 8, 2022, Yangtze Optical Fibre And Cable Joint Stock signed a share transfer agreement and voting rights entrustment agreement with five shareholders of Broadex Technologies, acquiring a total of 25.43% of the voting rights in Broadex Technologies, becoming the controlling shareholder and actual controller. It is reported that Broadex Technologies' main business is the research, production, and sales of integrated optoelectronic devices in the field of optical communications, with the company's 800G high-speed active copper cables being marketed towards data centers.