HK Stock Market Move | YOFC (06869) is currently up more than 6%. The company is expected to benefit from the global demand for artificial intelligence network products.

YOFC (06869) is now up more than 6%, as of the time of writing, it is up 5.88% at 12.6 Hong Kong dollars, with a turnover of 1333.36 million Hong Kong dollars. Nomura has released a research report stating that YOFC is one of the leaders in the Chinese optical cable market, and after a period of declining capital expenditure by mainland telecommunications operators, the company's diversification efforts may yield results by 2025. As a shareholder of A shares Broadex Technologies, Nomura believes that YOFC will benefit from the demand for its global artificial intelligence network products. The bank believes that with strong demand for artificial intelligence and a better product portfolio driving revenue and profitability, YOFC will reach a turning point. It is worth noting that on December 27, 2024, Broadex Technologies announced its intention to use 197 million yuan in cash to acquire 18.16% of the minority shares of Changxinsheng held by Changxinsheng's shareholders, increasing the company's stake in Changxinsheng to 60.45%. This transaction is beneficial for further integrating the respective resources and advantages of the company and Changxinsheng. It is reported that Changxinsheng was established in 2013 as a joint venture between Yangtze Optical Fibre And Cable Joint Stock and Viavi Solutions, integrating the strengths of YOFC in the field of optical fiber cables and Viavi Solutions in chip and module development, aiming to become a leading global active optical cable company.