HK Stock Market Move | YOFC (06869) fell more than 5% in the afternoon as the global expansion cycle of fiber optic cables begins, potentially intensifying market competition.

YOFC (06869) fell over 5% in the afternoon. As of the time of publication, it decreased by 5.12%, trading at HKD 114.8, with a transaction volume of HKD 3.706 billion. In terms of news, Japanese fiber optic cable supplier Furukawa Electric announced it will invest 100 billion yen to expand its fiber optic production capacity, expecting an increase to approximately twice the level by the end of the fiscal year 2025. It is reported that several fiber optic suppliers in China, Japan, the United States, and Europe have announced plans to expand their production capacity. According to a report by Credit Suisse, globally, 19,400 tons of new fiber preform capacity has been announced for 2026-2028, and it is likely that supply will still be tight in 2026, with a risk window opening in 2027-2028. Nomura previously warned that if new entrants successfully develop high-end products (such as hollow-core fibers and multi-core fibers) and smoothly execute their capacity expansion plans, market competition will intensify, putting pressure on existing participants to expand their profit margins.