HK Stock Market Move | YOFC (06869) rebounds more than 6% Fiber optic cable demand growth significantly Industry prices sharply increased.

YOFC (06869) rebounded by more than 6%, as of the time of this report, it rose by 6.29% to HK$148.8, with a trading volume of HK$1.976 billion. Galaxy Securities pointed out that the demand for optical fiber cables in the industry has increased significantly, leading to a substantial increase in industry prices. Operators' centralized procurement has seen a series of failed bids and price increases, with some product bidding prices even rising by 100% within two months. The increase in bidding prices reflects the overall market situation of significant price hikes for optical fiber cables; at the same time, this bidding is for emergency procurement projects, which are more short-term in nature. Combined with the suspension of bidding due to changes in project conditions, it may indicate that the shortage of optical fiber cables is becoming more common. Guosheng believes that with the increasing demand for drones and AIDC optical fibers, high-specification optical fiber production capacity is in short supply. In the context of supply shortages, customers are not sensitive to prices, leading to a steep increase in prices. At the same time, leading manufacturers are prioritizing limited production capacity for high value-added optical fibers, resulting in a capacity squeeze effect on ordinary optical fibers (G.652.D) used in traditional broadband and other fields. In addition, with the emergence of various agents, the use of tokens is rapidly expanding, which is expected to further drive traditional telecommunication traffic demand and thus boost the demand and prices of traditional optical fiber cables.