YOFC (06869) surged more than 4% in Hong Kong trading, with shares last up 3.99% at HK$138, on turnover of HK$1.252 billion.

According to the latest customs data, China's fiber optic and cable export prices climbed again in July 2026, setting a new annual record. Huachuang Securities noted that AI is reshaping the growth narrative for the fiber optic industry. As the only company globally that masters all three major preform manufacturing processes, YOFC is well-positioned to benefit from both rising volumes and higher prices across the sector. Through its controlling stake in Changxinsheng, the company is expanding into high-speed AI interconnect components, extending its value chain downstream. This dual-engine strategy is expected to unlock significant growth potential in the data communications market.

Adding to the momentum, YOFC is set to release its interim results today. The company previously guided for first-half net profit of RMB 2.4 billion to RMB 3.0 billion, representing a year-on-year increase of 711% to 914%. For the second quarter alone, net profit is expected to range from RMB 1.905 billion to RMB 2.505 billion, up 284% to 405% quarter-over-quarter. The anticipated earnings surge is attributed to the accelerating construction of AI data centers, which has fueled sustained demand for new fiber optic cable products both domestically and internationally, alongside continued improvements in industry supply-demand dynamics.