YOFC (06869) rebounded more than 6%, rising 6.29% to HK$148.8 by the time of writing, with a turnover of HK$1.976 billion. Analysts note that demand in the optical fiber and cable sector has grown significantly, accompanied by substantial price increases across the industry. Recent centralized procurements by telecom operators have seen repeated failures and price adjustments, with bid price ceilings for some products surging by as much as 100% within two months. The rise in tender prices reflects a broad market trend of steep price hikes for optical fiber and cable. Additionally, the tender in question was an emergency procurement project, emphasizing shorter cycles, which, combined with previously suspended tenders due to project changes, suggests that supply shortages of optical fiber and cable have become widespread. Some analysts believe that rising demand for unmanned aerial vehicles and AI data center fiber optics has led to a shortage of high-specification fiber production capacity. In this supply-constrained environment, customers have shown less sensitivity to pricing, contributing to the current sharp price increase trend. Meanwhile, leading manufacturers are prioritizing the allocation of limited capacity to produce higher-value fiber optics, which has crowded out production capacity for standard fiber (G.652.D) used in traditional broadband applications. Furthermore, the emergence of various AI agents and the rapid expansion in token usage are expected to further drive traditional telecommunications traffic demand, thereby boosting demand and prices for conventional optical fiber and cable.