HK Stock Market Move | YOFC (06869) rises over 6%; the company's earnings peak is still expected to occur before new capacity is commissioned, and it will continue to benefit from strong AIDC demand.

YOFC (06869) rose over 6%, up 6.47% as of press time to HK$107, with turnover of HK$1.911 billion. On the news front, HAITONG INT'L issued a research report stating that YOFC's third-quarter revenue rose 139.4% year-on-year to RMB9.316 billion, 10.6% above market expectations; net profit was RMB3.2 billion, broadly in line with expectations. The brokerage raised its net profit forecasts for the company for 2026 to 2028 by 32%, 40%, and 30% respectively to RMB9.1 billion, RMB13.1 billion, and RMB11.2 billion. HAITONG INT'L believes the earnings forecast upgrades mainly reflect a higher sales volume base based on the company's actual performance in the first nine months. The brokerage still expects earnings to peak in 2027, after which net profit may fall 14% in 2028 as spot prices decline and new capacity is gradually commissioned starting in the second half of 2027. Nomura said YOFC's robust growth was mainly driven by strong AIDC demand and supply shortages that drove sharp increases in optical fiber prices, as well as an improved product mix, and expects the company to continue benefiting from strong AIDC demand in the second half of 2026 and in 2027.