On May 26, Yangtze Optical Fibre and Cable (YOFC) declined 4.39% in regular trading, trading at 211.4 HKD/share, with trading volume of HKD 848 million.

The decline extends a profit-taking trend that has weighed on the stock since mid-May highs, with previous drops of 3.49% on May 19 and 3.46% on May 21. The company held its annual and Q1 earnings call on May 22, disclosing overseas revenue of RMB 6.09 billion, representing 42.7% of total revenue, driven by global AI data center construction. Q1 revenue reached RMB 3.695 billion (+27.7% YoY) with net profit of RMB 495 million (+226.4% YoY), and gross margin hit a record 41.51%. However, market participants view Q1 signals as mixed, with profit elasticity primarily driven by average selling price increases rather than volume expansion. Xingye Securities recently initiated coverage with an Overweight rating, projecting full-year net profit of RMB 8.75 billion, implying approximately 20.7x P/E on the Hong Kong listing.

(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.)