HK Stock Market Move | YOFC (06869) rose more than 5% in the afternoon. Nomura believes that the demand for AI and a diversified product portfolio are expected to drive performance to a turning point.

YOFC (06869) rose more than 5% in the afternoon, up 4.58% as of the end of the press release, at HK$13.7 with a transaction amount of HK$41.22 million. Nomura released a research report stating that Changfei is one of the leaders in the Chinese optical cable market, and after a period of decline in capital spending by domestic telecommunications operators, the company's efforts in diversification may yield results by 2025. As a shareholder of A-shares such as Broadex Technologies, Nomura believes that Changfei will benefit from the demand for its global AI network products. The bank believes that with strong demand for artificial intelligence and a better product mix, Changfei's revenue and profitability will reach a turning point. It is worth noting that Broadex Technologies previously disclosed an announcement to acquire the 18.16% stake of Changxincheng held by minority shareholders for a price of 391 million yuan. Some analysis institutions have 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. Changxincheng, a subsidiary under Yangtze Optical Fibre And Cable Joint Stock, mainly operates in AEC, ACC, DAC, and copper cables. To address competition within the industry, Yangtze Optical Fibre And Cable Joint Stock transferred Changxincheng as a subsidiary of Broadex Technologies. Changxincheng has cooperated in the AEC field with domestic companies such as Cambricon and ByteDance.