Shares of YOFC (HKEX: 06869) surged more than 14% in early morning trading. At the time of writing, the stock is up 8.49% to HK$17.38, with a turnover of HK$3.748 billion.

The company announced that from April 10 to July 9, its third-largest shareholder, Changjiang Communications, reduced its stake by selling approximately 999.9 thousand A-shares through centralized competitive bidding, representing about 0.12% of the company's total share capital. The stipulated time period for this planned reduction has now concluded. Following this move, Changjiang Communications' shareholding has decreased to 14.23%, though it remains YOFC's third-largest shareholder.

Analysts at Nomura previously noted in a research report that fiber supply constraints are likely to persist in the short term, allowing YOFC to continue benefiting from elevated spot prices and margin expansion driven by its increasing involvement in the AI data center market. However, the report also cautioned that if new market entrants successfully develop high-end products, such as hollow-core and multi-core fibers, and effectively execute their capacity expansion plans, competition could intensify. This scenario could potentially exert pressure on the profit margins of established players like YOFC.