Yangtze Optical Fibre and Cable climbs nearly 7% after Daiwa buy call

Yangtze Optical Fibre and Cable (6869.HK) climbed 6.9% in Hong Kong trading to HK$130.60. Daiwa Securities initiated coverage on the fiber optic cable maker with a "buy" rating and a target price of HK$152.

Daiwa said the company is benefiting from an upcycle in the fiber optic industry, citing its technology leadership and growth potential in the optical interconnect business. The brokerage expects the company's net profit to compound at an annual rate of 135% from 2025 to 2028.

The broader Hong Kong-listed optical communication sector rallied on the day, with multiple stocks advancing in tandem. Daiwa also noted that Yangtze Optical Fibre's global footprint and close ties with international clients position it well to capture overseas AI infrastructure demand.