Understanding the Market | YOFC fell over 4%, with a year-to-date increase of 3.2 times. Morgan Stanley recommends taking moderate profits on optical modules

YOFC fell over 4%, after a nearly 12% surge yesterday. As of the time of writing, it is down 4.38%, trading at HKD 51.25, with a turnover of HKD 887 million. On the news front, Morgan Stanley's latest research report indicates that the favorable fundamentals of the optical module industry are widely known and fully reflected in stock prices, suggesting that investors take moderate profits when market sentiment is high. Morgan Stanley believes that although the growth prospects for AI infrastructure demand remain positive, the current level of market enthusiasm is difficult to sustain. The report points out that YOFC's high-end optical fiber business has highlights, but a performance reversal still needs to be verified. Notably, YOFC's H shares have increased by as much as 3.2 times year-to-date. The company achieved operating revenue of RMB 6.385 billion in the first half of this year, an increase of 19.4% year-on-year; net profit was RMB 296 million, down 21.7%