HK Stock Market Move | YOFC(06869) surged more than 11% in the first quarter, with net profit increasing 1.6 times year-on-year. The company has made substantial progress in diversification.

YOFC (06869) rose more than 11%, with a gain of 11.47% as of the deadline, closing at 15.16 Hong Kong dollars with a turnover of 86.68 million Hong Kong dollars. On the news front, YOFC released its first quarter report for 2025, with operating income of 2.894 billion yuan, a year-on-year increase of 21.23%; net profit attributable to shareholders of listed companies was 152 million yuan, a year-on-year increase of 161.91%. Nomura had previously stated that YOFC is one of the leaders in the Chinese optical cable market, and after the capital spending downturn of mainland telecom operators, believes that the company's efforts in diversification may yield results in 2025. As a shareholder of A-shares Broadex Technologies, Nomura believes that YOFC will benefit from the demand for its global artificial intelligence network products. Tianfeng's previous research report pointed out that the company has made substantial progress in the fields of optical modules and devices, third-generation semiconductors, marine engineering, and industrial lasers. In addition to its traditional optical fiber business, the company has developed high-value-added products such as multimode and hollow-core optical fibers, while actively diversifying and creating potential growth points.