YOFC (06869), a leading optical fiber and cable manufacturer, saw its stock price soar by 5.02% during intraday trading on Wednesday. This significant uptick comes in the wake of news that shareholders have deposited shares worth HK$1.925 billion into J.P. Morgan Broking (Hong Kong) Limited, representing 10.69% of the company's total shares.

The surge in stock price occurs despite mixed interim results reported by YOFC. For the first half of the year, the company announced operating revenue of RMB 6.385 billion, marking a 19.4% year-over-year increase. However, net profit declined by 21.7% to RMB 296 million compared to the same period last year. The second quarter results showed a similar trend, with total operating revenue up 17.88% year-over-year to RMB 3.491 billion, while net profit attributable to shareholders fell by 54.96% to RMB 144 million.

The substantial share deposit with J.P. Morgan Broking appears to be driving investor optimism, potentially overshadowing the profit decline reported in the interim results. Market analysts suggest that this move by shareholders could be interpreted as a vote of confidence in YOFC's future prospects. Additionally, the strong revenue growth, despite profit challenges, may be viewed positively by investors who are betting on the company's long-term potential in the optical fiber and cable industry.