Shares of YOFC (HKEX: 06869) opened sharply higher, gaining nearly 15%.

At the time of writing, the stock was up 14.94% to HK$17.69, with a turnover of HK$135 million.

The company announced that its net profit for the first half of the year is expected to be between RMB 2.4 billion and RMB 3.0 billion, representing a year-on-year increase of 711% to 914%.

For the second quarter alone, net profit is forecast to be in the range of RMB 1.905 billion to RMB 2.505 billion, indicating a projected quarter-on-quarter surge of 284% to 405%.

The company attributes this significant performance growth to the continuously expanding demand for new fiber optic cable products, both domestically and internationally, driven by the accelerated construction of computing power data centers, coupled with ongoing improvements in the industry's supply-demand structure.

Analysis suggests the global fiber optic industry is at the beginning of a new super-cycle, marked by a fundamental shift in demand sources.

Historically, 70% to 80% of fiber demand originated from telecom operators for projects like Fiber-to-the-Home (FTTH) and 5G network deployment.

Looking ahead, AI data centers are expected to gradually become the primary source of demand for the industry, with projections indicating that enterprise and data center-related demand could account for over 80% of the total by 2030.