On July 30, YOFC declined 3.16% in regular trading, trading at HK$99.55 per share, with turnover of HK$747 million. The stock has now halved from its June high.

On the news front, global fiber optic leader Corning issued Q3 guidance that fell short of market expectations, triggering a sharp selloff in its shares and dampening sentiment across the optical communications sector. Simultaneously, an industry-wide capacity expansion wave continues to intensify, with multiple Chinese firms including Hengtong Optic-Electric, FiberHome, and Far East launching aggressive fiber preform expansion plans.

Jefferies previously downgraded YOFC from Buy to Hold, projecting global fiber capacity to expand by 69% through 2028. The brokerage warned the company faces market share erosion risks and that earnings over the next two years may represent a cyclical peak. While Morgan Stanley maintains a target price of HK$230 and emphasizes the AI-driven earnings growth trajectory remains intact, near-term supply-side expansion expectations continue to compress valuations across the sector.

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