On June 2, Yangtze Optical Fibre and Cable (YOFC) rose 3.71% in regular trading, trading at HK$218.6/share, with trading volume of HK$417 million. The stock rebounded after falling over 4% in the prior session, which had extended a correction of more than 25% from its historical high of HK$283.

On the news front, the company's A-share was officially included in the MSCI Emerging Markets Index after the close on May 29, while the Hong Kong-listed shares were simultaneously added to the Hong Kong Exchange Tech 100 Index, with the adjustment effective June 15. The dual index inclusion is expected to drive passive fund allocation flows into the stock.

From a fundamental perspective, YOFC reported Q1 net profit attributable to shareholders of RMB 495 million, representing a year-over-year increase of 226.4%, with gross margin reaching a record high of 41.51%. Analysts noted that as higher-priced orders begin to be recognized from Q2, profit elasticity is expected to accelerate further. However, the Q1 result fell below buy-side expectations of RMB 800-1,000 million, contributing to recent valuation pressure. Following the sharp pullback, market participants appear to be re-entering positions on the technical oversold condition.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)