Yangtze Optical Fibre And Cable Joint Stock Limited Company has issued a positive profit forecast, citing a substantial boost in profitability driven by surging demand for optical fibers and cables amid the global boom in computing power data center construction.

The company's announcement indicates an expected net profit attributable to shareholders of approximately 2.4 billion to 3.0 billion yuan for the first half of 2026, representing a year-on-year increase of 711% to 914%. In the same period last year, this figure was 296 million yuan. The company also anticipates that net profit after deducting non-recurring gains and losses will be between 2.0 billion and 2.6 billion yuan, with an even higher year-on-year growth rate of 1349% to 1784%.

The announcement attributes the significant earnings growth to the continuous expansion in demand for new optical fiber and cable products both domestically and internationally, spurred by the accelerated construction of computing power data centers, coupled with ongoing improvements in the industry's supply and demand structure. This performance confirms the rapid recovery in the optical fiber and cable sector's prosperity and highlights the powerful driving effect of computing power infrastructure development on related industrial chain companies.

Primary Growth Catalyst: Computing Power Construction Wave

Yangtze Optical Fibre And Cable Joint Stock Limited Company explicitly stated in its announcement that the core driver for its substantial performance growth during the reporting period stems from the accelerated construction of computing power data centers. With the large-scale deployment of artificial intelligence technologies, global demand for data center construction has significantly heated up. As a fundamental material for network interconnection, demand for optical fibers and cables has consequently seen sustained and substantial growth.

The continued expansion of investment in computing power infrastructure has provided strong support for industry demand. The company has fully leveraged its leading position in the global optical fiber and cable industry to accelerate the consolidation and expansion of its market share during this demand recovery cycle, thereby achieving a more pronounced increase in profit alongside revenue growth.

The company stated that, capitalizing on its globally leading industry position, it has actively seized international market opportunities, vigorously expanded its computing power data center-related business, and in the process achieved an expansion of its core customer base and optimization of its product mix, leading to a significant enhancement in overall profitability.

From a data comparison perspective, the company's net profit after deducting non-recurring items was merely 138 million yuan in the same period last year, while the lower end of the forecast range for this period has already reached 2.0 billion yuan, reflecting a substantive improvement in the company's profit quality.