WOER (09981) fell more than 6% again, hitting a low of HK$16.38. At the time of writing, the stock was down 5.54% to HK$16.53, with a turnover of HK$50.20 million. The company reported its first-quarter results, with revenue of approximately RMB 2.032 billion, a year-on-year increase of 15.52%. Net profit was RMB 231 million, a decrease of 7.63% compared to the same period last year. Huatai Securities noted that the comprehensive gross profit margin for the first quarter was 30.46%, down 2.07 percentage points year-on-year. This was primarily due to rising raw material costs for high-margin power high-voltage products and wind power business not yet being passed on to product prices. It is anticipated that the rapid growth of high-margin high-speed communication cable products may help lift the overall gross margin in the future. The securities firm expressed optimism regarding the company's high-speed communication cable business, which stands to benefit from growing demand for short-distance AI connectivity both domestically and internationally. The company holds a strategic position with core equipment and is expected to see both market share growth and customer expansion. Considering fluctuations in raw material prices for its main power business and foreign exchange gains/losses due to the appreciation of the Renminbi, Huatai Securities has lowered its gross margin forecast for the power business and raised its future financial expense estimates. Consequently, it has revised down its net profit attributable to shareholders forecasts for 2026-2028 to RMB 1.831 billion, RMB 2.364 billion, and RMB 2.777 billion, respectively.