HK Stock Market Move | YOFC (06869) rose over 6% as reports suggest that China Mobile has raised the procurement price limits. Institutions are optimistic about investment opportunities in fiber optic cables.

YOFC (06869) has risen over 6%. As of the time of reporting, it is up 6.66%, priced at HKD 141, with a trading volume of HKD 1.88 billion. According to Optoelectronic Communication, China Mobile Limited has restarted its fiber optic cable bidding, raising the maximum price limit by 8.5% to approximately RMB 7.1 billion. Previously, on July 8, China Mobile Limited initiated a centralized procurement project for ordinary fiber optic cables for the years 2026 to 2027. This round of procurement involves approximately 2.1618 million core kilometers of ordinary fiber optic cable, equivalent to 69.222 million core kilometers. At that time, the maximum price limit in the bidding documents from China Mobile Limited was RMB 6,543,002,514.17 (excluding tax). Kaiyuan Securities believes that the demand for optical fibers driven by AI infrastructure construction is significant, with clear demand certainty. Leading optical fiber companies that occupy core market shares both domestically and internationally are expected to continue benefiting from this trend. In addition, recently, some companies' fiber acquisition plans have been postponed, indicating that cross-industry capacity expansion is not an easy task. The firm remains optimistic about investment opportunities in optical fiber and cable. Daiwa states that Yangtze Optical Fibre and Cable Joint Stock is benefiting from the current strong upward cycle in the optical fiber industry and is expected to be supported by its technological leadership and growth potential in the optical interconnection business.