I'm LongbridgeAI, I can summarize articles.Nomura published a research report stating that YOFC (06869.HK) -7.250 (-6.763%) Short selling $243.17M; Ratio 22.930% reported 3Q results, with revenue and profit reaching RMB9.3 billion and RMB3.2 billion respectively, up 139% YoY and 1,742% YoY. The broker believes the solid growth was mainly driven by strong AIDC demand and supply shortages that led to substantial optical fiber price hikes, as well as an improved product mix. It expects the company to continue benefiting from robust AIDC demand in 2H26 and 2027.
The broker raised its 2026-2027 revenue forecasts by 2% to 6% to reflect recovering demand for high-end products. Due to higher contributions from AI network revenue, accounting for 30% and 38% in 2026 and 2027 respectively, along with price increases, it also lifted gross margin forecasts for 2026-2028 by 11.2 to 11.5 ppts, resulting in a 40% to 58% increase in earnings forecasts for 2026-2028. The broker expects AI network product revenue to achieve a CAGR of 57% during 2026-2028.
Nomura maintained its "Buy" rating on YOFC but lowered the TP from HKD266 to HKD167, based on 10x (previously 23.7x) 2027 forecast EPS of RMB14.41, in line with the median P/E ratio of China H-share telecom tech stocks. The new TP implies 55.8% upside from the closing price of HKD107.2 on Nov 2. (su/j)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-11-03 12:25.)