HK Stock Market Move | YOFC (06869) rose by more than 5 percent. Changxin Shenghe, domestic companies such as Hanwuji, and Byte have cooperated in the AEC field.

YOFC (06869) rose by over 5%, as of the time of publication, it is up 3.92% to 13.26 Hong Kong dollars, with a turnover of 42.5272 million Hong Kong dollars. Nomura released a research report stating that YOFC is one of the leaders in the Chinese optical cable market. After a period of decline in capital expenditure by mainland telecom operators, Nomura believes that the company's efforts in diversification may bear fruit by 2025. As a shareholder of A-share company Broadex Technologies, Nomura believes that YOFC will benefit from the demand for its global artificial intelligence network products. The bank believes that under strong demand for artificial intelligence and a better product mix, YOFC's revenue and profits will reach a turning point. It is worth noting that Broadex Technologies previously disclosed a plan to acquire the 18.16% stake in subsidiary Changxinsheng held by minority shareholders for 391 million yuan. Some analysis institutions pointed out that Broadex Technologies originally did not produce AEC products, with its main product being AOC. Later, Broadex Technologies was acquired by Yangtze Optical Fibre And Cable Joint Stock. Changxinsheng, a subsidiary of Yangtze Optical Fibre And Cable Joint Stock, is mainly engaged in AEC, ACC, DAC, copper cables, etc. To address competition issues in the industry, Yangtze Optical Fibre And Cable Joint Stock transferred Changxinsheng to a subsidiary of Broadex Technologies. Changxinsheng has cooperated with domestic companies like Cambricon and ByteDance in the AEC field.