HK Stock Market Move | YOFC (06869) rose by more than 5%, institutions pointed out that the price increase of optical fibers is expected to become a long-term trend.

YOFC (06869) rose by more than 5%, rising to 5.38% as of press time, reporting 238.8 Hong Kong dollars, with a trading volume of 40.54 billion Hong Kong dollars. On the news front, Sinolink pointed out that under the drive of AI, the trend of rising fiber optic prices is expected to become a long-term trend, focusing on investment opportunities in fiber optic cable assets. 1) AI has become an important demand area for fiber optics: According to the independent research institute CRU, AI and hyperscale data centers have become the strongest growth engines globally, with low-loss design, higher specification fibers (such as G.657.A1 and G.657.A2 bend-insensitive fibers), and ultra-high fiber count cable structures, making data center-related demand the core of market growth. 2) Fiber optic prices have entered a explosive uptrend this year. Guosheng believes that the fiber optic cable industry is experiencing a cycle different from the traditional boom and bust cycles, different from the traditional cycle dominated by operator group procurement. In this cycle, the long-term growth logic of fiber optic cables is continuously strengthening, and the industry is undergoing systematic restructuring of its valuation system. On the one hand, fiber optic exports are accelerating, opening up long-term incremental space; on the other hand, AI data centers are driving high-density interconnection, leading to a surge in demand for special fiber optics, shifting from bulk commodity to high-value customized categories, significantly increasing unit value.