YOFC (06869) surged 5.07% during intraday trading on Wednesday, fueled by a fresh Buy rating initiation from Daiwa and continued institutional accumulation by BlackRock.

Daiwa recently launched coverage on YOFC with a Buy rating and a target price of HK$152, implying a forward P/E of 10x. The brokerage highlighted the company's strong positioning in a fiber optic upcycle, projecting an optical interconnect gross profit CAGR of 137% and net profit CAGR of 135% for 2025-2028. YOFC's global footprint and close relationships with international clients were noted as key advantages for capturing overseas AI infrastructure demand, with overseas gross profit CAGR forecast at 109% for 2026-2028.

Adding to the positive sentiment, BlackRock raised its H-share stake in YOFC to 7.37%, reinforcing institutional confidence. The company had previously guided H1 net profit growth of 711% to 914% year-over-year, with the board scheduled to review interim results on August 21. The stock also benefited from a broader rally in optical communications shares, with peers like Xizhi Tech and ZJ Innolight also moving higher in early trade.