Shares of YOFC (06869) surged more than 8% during the morning session, with the stock last trading up 7.72% at HK$142.40, on turnover of HK$2.276 billion. The rally follows news that China Mobile has relaunched its general cable procurement tender, raising the maximum price cap by 8.5% to approximately 7.1 billion yuan.

On July 8, China Mobile initiated the procurement project for ordinary optical cables covering 2026 to 2027. The tender involves approximately 216.18 million core-kilometers of cable, equivalent to 69.22 million core-kilometers. At that time, the maximum procurement limit specified in the bidding documents was 6,543,002,514.17 yuan (excluding tax).

Analysts at Kaiyuan Securities believe that the demand for optical fiber driven by AI infrastructure construction is substantial, with strong visibility in demand. Leading fiber optic companies that hold key positions in both domestic and international markets are expected to benefit continuously from this trend. Additionally, recent plans by some companies to acquire fiber assets have been put on hold, highlighting the difficulty of cross-industry expansion. The brokerage remains optimistic about investment opportunities in the fiber optic cable sector.

Daiwa noted that YOFC is benefiting from the current strong upcycle in the fiber optic industry, adding that the company is supported by its technological leadership and upside potential in its optical interconnect business.