HK Stock Market Move | Concept stocks related to optical communication all fell, with YOFC (06869) dropping more than 7%. Institutions said that provisions and exchange losses may affect industry profits.

Concept stocks in the optical communication sector all fell, as of the time of writing, YOFC (06869) fell by 6.91% to 86.2 Hong Kong dollars; HUA HONG SEMI (01347) fell by 4.2% to 98.1 Hong Kong dollars; TIME INTERCON (01729) fell by 3.86% to 16.93 Hong Kong dollars; Cig Shanghai (06166) fell by 3.06% to 71.25 Hong Kong dollars; Hongteng Precision (06088) fell by 2.87% to 4.74 Hong Kong dollars. Guotai Haitong released a research report stating that the performance forecast for 2025 is over, the RMB has appreciated, and for the optical interconnect sector mainly focused on overseas exports, provisions and exchange rate adjustments will have an overall impact, potentially affecting profits by up to 5% on average. However, some companies' provisions and exchange rate adjustments are expected to affect nearly half of profits. Looking ahead to 2026, there may still be individual differences in the industry but overall they are manageable. Looking ahead to 2026-2027, the market for pluggable modules continues to improve, but new packaging and material technology changes are starting to materialize, which are worth paying attention to for marginal opportunities.