YOFC Shares Plunge Over 10% in Morning Session as Major Shareholder Plans to Reduce Stake

Stock News
Apr 10

YOFC (06869) saw its shares drop more than 10% during the morning trading session. As of the time of writing, the stock was down 9.82%, trading at HK$21.68, with a turnover of HK$4.885 billion. The decline follows an announcement from YOFC that its shareholder, Wuhan Yangtze Communication Industry Group Co., Ltd., intends to reduce its stake in the company by up to 1 million shares, or 0.12% of the total share capital, through a centralized bidding transaction between April 10, 2026, and July 9, 2026, due to its own operational development needs. Meanwhile, institutions such as UBS have raised their profit forecasts for the company but highlighted the need to monitor risks related to the capacity expansion cycle and global supply-demand balance. Separately, Google Cloud Next '26 is scheduled for April 22-24, focusing on enterprise AI, cloud innovation, and agent-based AI. Kaiyuan Securities noted that the event could mark the beginning of a new technological roadmap for Google, potentially creating additional demand for optical circuit switches. Additionally, the trend of rising optical fiber prices has spread globally, with the supply-demand gap expected to widen to 15% during 2026-2027.

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