Daiwa: Initiated coverage on Longi Green Energy's optical fiber cable with a "Buy" rating and a target price of HKD 152.

Daiwa has published a research report initiating coverage of Yangtze Optical Fibre and Cable (YOFC) with a "Buy" rating and a target price of HKD 152, which corresponds to a projected price-to-earnings ratio of 10 times for next year. Daiwa stated that YOFC will benefit from the current strong upcycle in the optical fiber industry and is expected to be supported by its technological leadership and the growth potential of its optical interconnect business, which has a predicted compound annual growth rate of 137% in gross profit. This will drive a compound annual growth rate of 135% in net profit from 2025 to 2028. Regarding overseas business, Daiwa believes that YOFC's global presence and close relationships with international clients are key advantages for capturing overseas demand for AI infrastructure. The firm forecasts the company's overseas gross profit compound annual growth rate to be 109% from 2026 to 2028, with gross margins estimated to be 53%, 56%, and 48% respectively for 2026 to 2028.