YOFC (06869) saw its shares rise by more than 12% in early trading this morning. At the time of writing, the stock was up 9.39%, trading at HK$159.60, with a turnover of HK$2.528 billion.

According to reports from C114 Communication Network, China Telecom's Heilongjiang branch recently issued a tender announcement for an emergency procurement project of outdoor optical cables for 2026. In this project, the maximum unit price for "optical cable-GYTA-single-mode G.652D-24-core" cable was set at 3,737.43 yuan per sheath-kilometer. Industry insiders estimate that the unit price of G.652D optical fiber has already exceeded 100 yuan per core-kilometer. Previously, in January, Guangdong Telecom set the maximum unit price for the same type of cable at 1,245 yuan per sheath-kilometer in a centralized procurement project. After the initial tender failed, the procurement was relaunched in March with the price raised to 2,500 yuan per sheath-kilometer, an increase of over 100%.

Galaxy Securities previously pointed out that demand in the fiber optic cable industry has grown significantly, leading to substantial price increases. Centralized procurements by telecom operators have repeatedly seen failed tenders and price hikes, with bid limits for some products doubling within just two months. The rise in tender unit prices reflects the widespread market trend of significant price adjustments for fiber optic cables. Additionally, this tender is an emergency procurement project, indicating a shorter cycle and more urgent needs. Combined with previously suspended tenders due to changing project conditions, it suggests that shortages in fiber optic cable supply may have become more common.