Shares of YOFC (HKG: 06869) surged more than 8%, climbing 8.37% to HK$22.78 by the latest update, with trading volume reaching HK$2.063 billion.

Industry analysis indicates that domestic fiber optic prices in China have returned to historical highs, with the global market entering a concurrent period of high demand. The price for domestic G.652.D single-mode fiber has risen from less than RMB 20 per core-kilometer at the start of 2025 to approximately RMB 83.4 per core-kilometer by March 2026, marking a cumulative increase exceeding 400% and reaching a nearly seven-year peak. The price increase for G.657.A2 fiber has been even more pronounced at 650%.

The supply-demand dynamic remains tight due to several factors. On the supply side, the expansion of preform production capacity is progressing slower than that for fiber drawing. On the demand side, three major forces are converging: the requirements from AI data centers, a recovery in overseas telecommunications, and the growing use of fiber in drone applications.

This situation has led analysts to suggest that the fiber optic cable sector presents a strategic investment opportunity. A recent industry report highlights robust growth in U.S. domestic cable demand for 2026, with data centers specifically driving rapid demand for higher-specification, higher-value-added products like G.657.A1/A2 fibers. In China, the incremental demand for data center cables primarily stems from bulk procurement by major domestic cloud service providers.

While the path to restoring production capacity is becoming clearer, significant bottlenecks and structural imbalances persist. Consequently, the prevailing view is that the current supply shortage is likely to continue for some time. The sector is seen as being in a major historical cycle, with a positive outlook for leading domestic fiber manufacturers that possess strengths in overseas market expansion, flexible production capacity, and potential for valuation reassessment.