Nomura: Maintains target price of HK$266 for YOFC (06869) and a "Buy" rating.

Nomura released a research report stating that it maintains a target price of HK$266 for YOFC (06869) and a "buy" rating. Nomura pointed out that China Mobile Limited (00941) issued a tender notice for the centralized acquisition of ordinary optical cable products from 2026 to 2027 on July 8th, with a procurement scale of approximately 69.2 million core kilometers. The demand satisfaction period is 9 months after the announcement of the procurement results, equivalent to an annual demand of approximately 92.3 million fiber kilometers. Compared with the procurement volume of 98.8 million core kilometers in 2025-2026, the annual demand has decreased by 6.6% compared to the same period last year. China Mobile Limited did not disclose the upper limit of the winning bid price for this tender; however, considering the recent rise in optical fiber industry prices, the bank expects bidding prices to increase this year. In 2025, the weighted average bidding price for cable products was RMB 53.85 per core kilometer (including VAT), while the price of fiber was lower than RMB 25. Nomura expects the tender results to be announced within a month, along with detailed information on the price and share allocation of the winning suppliers.