<div id="readability-page-1"><div><p>YOFC (06869.HK)<span> </span><span> -23.800 (-9.319%)  </span> <span> Short selling $496.22M; Ratio 8.406%  </span>  opened 2.11% lower today (10th), hitting an intraday trough of HKD229.2. It is currently trading at HKD232.4, down 9.01%, with turnover of 10.8202 million shares, involving HKD2.592 billion.</p><p>G Sachs said in a research report that it has reviewed the recent production, pricing and demand trends of fiber optic cables in Mainland China. Overall, driven by data center customers, China’s fiber optic cable demand remains strong, although the current base is still relatively small compared with telecom applications. According to data from the National Bureau of Statistics, fiber optic cable output in March and April declined 6% and 16% YoY, respectively. The bank attributed this to a temporary capacity shift between telecom and data center applications. In terms of pricing, according to CRU data, the price of G652.D fiber in China edged down to RMB81.9 per fiber-kilometer in May, compared with RMB83.4 per fiber-kilometer in March, but remained higher than the level in May 2025, supported by robust demand.</p><p>G Sachs added that export pricing of fiber in April recorded significant growth, rising 287% YoY, while export volume increased 9% YoY. As telecom operators are set to launch a new round of procurement tenders, YOFC is expected to benefit from the fiber pricing trend and continue upgrading its product mix toward data center products. The company has maintained discipline in fiber capacity expansion, possesses flexible capacity allocation capabilities, and is well positioned to benefit from the upcycle in pricing.</p><p>Based on a discounted P/E approach using 2029 forecast P/E to reflect the company’s long-term growth, G Sachs maintained its 12-month target price at HKD290, corresponding to a 2029 forecast P/E of 17.7x, discounted back to 2026 forecast using an 11% cost of equity. Given reasonable valuation, it reiterated a Neutral rating.</p></div></div>

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<p>YOFC shares fell 9% despite Goldman Sachs maintaining a Neutral rating and a HKD290 target price. G Sachs cited strong AI-driven fiber demand supporting pricing, though recent output declined due to capacity shifts. Export prices surged 287% YoY. The bank highlighted YOFC's flexible capacity and product mix upgrade potential, deeming the current valuation reasonable.</p>

YOFC Slumps 9% as G Sachs Says AI Demand Supports Firm Fiber Pricing; Valuation Reasonable, Maintains Neutral