HK Stock Market Move | YOFC(06869) fell more than 8% in early trading, dropping more than 25% from its peak. Japanese fiber optic stock Fujikura was halved in the previous week.

YOFC (06869) fell more than 8% in early trading, down more than 25% from its historical high of 283 Hong Kong dollars. As of the time of writing, it had fallen by 7.29% to 211 Hong Kong dollars, with a turnover of 21.61 billion Hong Kong dollars. On the news front, according to the Science and Technology Innovation Board Daily, fiber optic cable manufacturer Fujikura Co., Ltd. saw its stock price almost halve in the week ending on May 20. The market is increasingly concerned that some data center projects are facing delays due to material bottlenecks and supply chain constraints. Since May 13, the stock performance of other fiber optic cable manufacturers, Furukawa Electric Industries and Sumitomo Electric Industries, has also lagged behind Japan's benchmark Nikkei 225 index. UBS previously released a research report stating that YOFC's first-quarter net profit was 495 million yuan, lower than market expectations of 800 million to 1 billion yuan, leading to a negative market reaction in the short term. However, the bank remains confident in the company's future earnings growth for the next few quarters, believing that the increase in fiber optic prices will take time to fully reflect and that data center demand will continue to increase, leading the company to potentially achieve the bank's full-year forecast.