YOFC (06869) surged over 9%, rising 9.23% to HK$53.85 with trading volume of HK$1.792 billion as of press time.

On September 12, the signing ceremony for the embodied intelligent robot industry development and the establishment of Changzhi (Sanya) Embodied Intelligence Technology Co., Ltd (referred to as "Changzhi Company") was held at Sanya Development Holdings Co., Ltd. Changzhi Company is jointly established by YOFC, Sanya Digital Economy Industrial Park, robot manufacturers, and Digital Huaxia.

YOFC noted that the establishment of Changzhi Company lays a solid foundation for its AI strategy implementation and represents an important initiative in the company's strategic expansion from "communication transmission" to "intelligent applications."

TF Securities believes that based on its traditional optical preform and fiber business, the company is developing high value-added products such as multimode and hollow-core optical fibers while actively pursuing diversification.

Additionally, Morgan Stanley recently issued research indicating that the fundamental positives for the optical module industry have been largely reflected in stock prices. The institution made rating adjustments to multiple optical module-related stocks. Morgan Stanley raised YOFC's target price while maintaining its rating, noting that while fundamental performance has not yet reached an inflection point, stock price gains have already reflected potential positives.