On June 3, Yangtze Optical Fibre and Cable (YOFC) rose 4.64% in regular trading, reaching HK$247.8 per share with trading volume of HK$569 million. The stock rallied alongside a broad-based surge in Hong Kong-listed optical communication stocks.

On the news front, the optical communication sector collectively strengthened as AI data center buildout continues to drive high demand for fiber optic infrastructure. Supply-side constraints remain prominent, with industry capacity recovery lagging behind demand growth. Analysts note that supply shortages are expected to persist due to structural bottlenecks in optical preform expansion. YOFC reported a record-high gross margin of approximately 41.5% in Q1, with net profit attributable to shareholders surging 226.4% year-over-year. Institutions expect profit elasticity to accelerate as high-priced orders are confirmed starting in Q2. Additionally, the company was recently included in both the MSCI Emerging Markets Index and the HKEX Tech 100 Index, bringing passive fund allocation expectations.

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