HK Stock Market Move | YOFC (06869) fell by more than 4%, and the stock price has been halved compared to its peak in June. The wave of expanding fiber optic production may alleviate the supply shortage.

YOFC (06869) fell more than 4%, worth noting that the current stock price has been halved from its high point in June. As of the time of writing, it fell 4.37%, to HK$120.3, with a turnover of HK$20.88 billion. On the news side, with the significant increase in fiber optic prices and the significant improvement in investment returns, companies in the industry chain have launched the expansion of optical rods and special optical fibers, attracting some companies to enter the industry. Since the beginning of this year, companies such as Hengtong Optic-Electric, Fiberhome Telecommunication Technologies, Far East Smarter Energy, Tongding Interconnection Information, Hoshine Silicon Industry, and Han's Laser Technology Industry Group have launched expansion plans for optical rods. Furui believes that although AI and geopolitical conflicts are driving fiber optic demand, the US supply chain also faces serious shortages. However, with China and the world significantly expanding production, the increase in supply will gradually eliminate the shortage. YOFC may face the risk of losing market share, and profits in 2026 to 2027 may be at a cyclical peak.