On June 23, Yangtze Optical Fibre and Cable (YOFC) rose 5.1% in regular trading, trading at HK$285.4 with turnover of HK$2.181 billion, extending gains from the prior session's 30%-plus surge.

The rally continues to be driven by the global fiber optic supply crunch narrative. Reports indicate that Japanese fiber supplier Fujikura raised DCI interconnect cable prices by 30% due to slow capacity expansion amid surging North American AI data center demand, while also upgrading its earnings guidance. Corning similarly faces delivery pressure and is planning dedicated capacity expansion for NVIDIA. Analysts note that fiber preform has been in persistent undersupply since January, with global capacity approaching full utilization.

YOFC, which has maintained the world's number one market share in fiber preform, optical fiber, and optical cable for nine consecutive years since 2016, is positioned as a prime beneficiary of the supply-demand reversal cycle. The company reported Q1 gross margin of 41.51%, up 13.67 percentage points year-over-year, with net profit surging 226.4%. Its 100% self-sufficiency in fiber preform enables full capture of pricing upside, reinforcing earnings elasticity.

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