On August 25, YOFC rose 4.05% in regular trading, trading at 147.0 HKD/share, with turnover of HKD 786 million, rebounding sharply from the previous session's sector-wide pullback.
On the news front, multiple catalysts converged to support the stock. The company reported H1 results on August 21 showing revenue of RMB 98.09 billion, up 53.6% year-over-year, and net profit attributable to shareholders of RMB 29.25 billion, up 889% year-over-year. Revenue growth was driven by accelerated smart computing center construction and improved product mix, with both sales volumes and average selling prices rising. Overseas revenue maintained above 40% of total sales.
Everbright Securities noted that fiber price increases significantly boosted profitability, with optical interconnection business expected to sustain high growth. Daiwa initiated coverage with a Buy rating and HKD 152 target price, citing a projected 135% net profit CAGR from 2025 to 2028. The previous session saw the optical communications sector pull back broadly, with YOFC declining 3.14%, creating conditions for a technical rebound on earnings-backed buying.
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