YOFC (06869) surged more than 10% in Hong Kong trading, with shares climbing 10.09% to HK$155 at the time of writing, on a turnover of HK$3.138 billion.

On the news front, YOFC recently announced its interim results for 2026, reporting revenue of approximately RMB 9.809 billion, a year-on-year increase of about 53.6%. Gross profit reached approximately RMB 5.234 billion, up 189.7% year-on-year. Net profit attributable to the parent company stood at approximately RMB 2.9245 billion, marking a staggering 889.0% year-on-year growth. The company declared an interim dividend of RMB 1.06 per share (pre-tax).

Looking at the second quarter alone, the company achieved revenue of RMB 6.114 billion, a sequential increase of 65.4%, while net profit attributable to shareholders came in at RMB 2.430 billion, up 390.7% quarter-on-quarter.

Where the momentum is coming from

Analysts at Huatai Securities noted that the company's revenue and ex-non-recurring profit both posted robust growth, primarily driven by rising demand for new types of optical fiber and cable both domestically and internationally, fueled by the construction of intelligent computing centers. Product sales volumes and average selling prices rose in tandem, further supported by a higher mix of high-value-added products.

The gross margin for the second quarter climbed further to 60.52%, validating the earnings elasticity brought about by rising optical fiber prices and the ramp-up of premium product shipments. Looking ahead, the brokerage remains optimistic about sustained earnings growth, underpinned by the booming optical fiber and cable sector, continued overseas market expansion, and the synergistic development of diversified businesses such as optical interconnect components.