HK Stock Market Move | YOFC (06869) rises over 6% as optical fiber supply-demand dynamics remain tight; leading companies are expected to fully unlock profit elasticity.

YOFC (06869) rose over 6%, up 6.27% as of press time, at HK$188.1, with a turnover of HK$2.14 billion. On the news front, Corning's recent ten-year long-term agreement with Verizon, combined with the nearly 90% increase in unit prices from China Mobile Limited's centralized procurement, further confirms that the supply-demand dynamics of the optical fiber industry are reversing. Galaxy Securities pointed out that the optical fiber industry is transitioning from a traditional telecom cyclical sector to the computing power infrastructure track, with backbone network expansion and data center internal demand resonating to open up long-cycle structural incremental space. Leading companies with self-sufficiency in core materials will fully unlock profit elasticity. In the second quarter of this year, YOFC achieved revenue of RMB 6.114 billion, up 65.4% quarter-on-quarter; net profit attributable to shareholders was RMB 2.430 billion, up 390.7% quarter-on-quarter. Previously, the company also launched a series of new polarization-maintaining fiber products at the 27th International Optoelectronic Expo, introducing the CopackAlign brand. Zhuang Dan, Executive Director and President of the company, stated that CPO and NPO are accelerating from industry consensus toward large-scale implementation, and polarization-maintaining fiber has become a rigid demand for AI optical interconnect.