HK Stock Market Move | YOFC (06869) rises over 11% - AI development drives high-speed copper cable demand growth Nomura is optimistic about its performance reaching a turning point

YOFC (06869) rose more than 11%, rising to 11.43% as of press time, reaching HKD 15.6 with a trading volume of HKD 2.47 billion. On the news side, Broadex Technologies previously disclosed an announcement to acquire the 18.16% stake in Changxin Sheng held by minority shareholders for a price of 391 million yuan. Some analysts pointed out that Broadex Technologies originally did not produce AEC products, its main products being AOC. Later, Broadex Technologies was acquired by Yangtze Optical Fibre And Cable Joint Stock. Changxin Sheng, a subsidiary of Yangtze Optical Fibre And Cable Joint Stock, mainly engages in AEC, ACC, DAC, copper cables, etc. In order to solve industry competition issues, Yangtze Optical Fibre And Cable Joint Stock transferred Changxin Sheng to a subsidiary of Broadex Technologies. Changxin Sheng, as well as domestic companies such as Cambricon and ByteDance, have cooperation in the field of AEC. EB SECURITIES pointed out that with Google, Broadcom AWS, Microsoft tending to use self-developed ASIC and Ethernet architecture for networking, the demand for active copper cables will see high growth, and this high growth trend is expected to continue for at least 2 to 3 years. Nomura previously believed that the company's efforts towards business diversification may yield results by 2025. As a shareholder of A-share Broadex Technologies, Nomura believes Changfei 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 it, Changfei's revenue and profits will reach a turning point.