HK Stock Market Move | YOFC(06869) rose more than 8% driven by the super cycle of AI, bringing a booming optical fiber industry. Institutions predict that the shortage of supply will continue.

YOFC (06869) surged more than 8%, rising 8.37% to 227.8 Hong Kong dollars by the time of publication, with a trading volume of 20.63 billion Hong Kong dollars. On the news front, according to Industrial, domestic optical fiber prices have returned to historical highs and entered a prosperous phase globally: the price of domestic G.652.D single-mode fiber has risen from less than 20 yuan per core kilometer in early 2025 to approximately 83.4 yuan per core kilometer in March 2026, with a cumulative increase of over 400%, reaching a near seven-year high; the increase for G.657.A2 fiber is even higher at 650%. The expansion of optical fiber rods is slower than that of optical fibers, with the combined forces of demand from AI data centers, the recovery of overseas telecommunications, and optical fiber drones, creating a situation of demand outstripping supply. Huatai believes that the optical fiber cable sector has entered a strategic window. According to the CRU May report, demand for optical cables in the United States is expected to grow strongly in 2026, driven by data centers with increasing demand for high-specification, high-value optical fiber products such as G.657.A1/A2; the increase in demand for optical cables in Chinese data centers is mainly from concentrated purchases by domestic top cloud providers (such as Alibaba, Tencent, etc.). On the supply side, the recovery path of production capacity is clear, but bottlenecks and structural contradictions are prominent, and the industry believes that the shortage of supply will continue. The industry continues to view the historical opportunity of the optical fiber cable sector, and recommends paying attention to domestic optical fiber industry leaders with overseas breakthrough capabilities, production expansion flexibility, and potential for valuation reshaping.