Shares of YOFC (06869) surged over 8% during intraday trading, and as of press time, the stock had risen 7.77% to HK$131.70, with a trading volume of HK$1.581 billion.

Daiwa Securities released a research report stating that YOFC is benefiting from the current strong upcycle in the fiber optic industry. The firm expects the company to be supported by its technological leadership and the upside potential of its optical interconnect business. The optical interconnect segment is forecast to achieve a compound annual growth rate (CAGR) of 137% in gross profit, driving a net profit CAGR of 135% from 2025 to 2028.

Regarding overseas operations, Daiwa believes that YOFC's global footprint and close relationships with international clients are key advantages for capturing demand from overseas AI infrastructure projects.