HK Stock Market Move | YOFC (06869) surged over 14% in early trading, the third largest shareholder completed reduction holding, the company is expected to continue benefiting from the increase in optical fiber prices.

YOFC (06869) rose over 14% in early trading. As of the time of writing, it has increased by 8.49% to 173.8 Hong Kong dollars, with a turnover of 37.48 billion Hong Kong dollars. On the news front, YOFC announced that from April 10 to July 9, Wuhan Yangtze Communication Industry Group has cumulatively reduced its holdings of 999,000 shares of A-shares through centralized bidding trading, accounting for 0.12% of the company's total share capital. The time interval for the implementation of the reduction plan by Wuhan Yangtze Communication Industry Group has expired. Wuhan Yangtze Communication Industry Group's shareholding ratio has decreased to 14.23%, still ranking as the third largest shareholder of YOFC. Nomura previously published a research report stating that in the short term, fiber optic supply constraints will continue, and Changfei can continue to benefit from higher spot prices and profit margin expansion due to its further involvement in the AI data center market. However, if new entrants can successfully develop high-end products (such as hollow core fiber and multi-core fiber) and smoothly execute their capacity expansion plans, the market competition is expected to intensify, and existing participants like Yangtze Optical Fibre And Cable Joint Stock may face pressure on profit margin expansion.