HK Stock Market Move | YOFC (06869) rises over 6% as optical fiber spot price multiples climb; the company is a deep beneficiary of the surge in high-end optical fiber demand.

YOFC (06869) rose over 6%, up 6.21% as of press time, at HK$131.7, with a turnover of HK$984 million. On the news front, according to reports, based on the latest communications industry research by TrendForce, as AI data centers, cross-data center interconnection, and high-capacity backbone network construction drive up optical fiber demand, the global optical fiber supply-demand gap is estimated to reach 180 million core kilometers in 2026. Tightening supply will drive spot prices of finished optical fiber products up by 2.8 to more than 5 times year-on-year. As a result, telecom vendors have begun gradually adjusting their procurement models, shifting from short-term to long-term contract arrangements to lock in optical fiber resources in advance. DBS previously issued a research report stating that it upgraded Yangtze Optical Fibre and Cable Joint Stock's rating from "Fully Valued" to "Buy", with a target price of HK$259. Guotai Haitong previously noted that the company, as a global leader in optical fiber, is a deep beneficiary of the explosive demand for high-end optical fiber from AI data centers. Optical preform capacity expansion is difficult, supply and demand are continuously tightening, and the upward trend in optical fiber prices is evident.