On July 28, YOFC fell 6.68% in regular trading, trading at HKD 118.4/share, with turnover of HKD 180 million. The stock has now halved from its June high, with the downtrend extending.

On the news front, the fiber optic industry expansion wave continues to weigh on sentiment. Multiple companies including Hengtong Optic-Electric, FiberHome Communications, and Far East Cable have launched fiber preform expansion plans, while cross-sector entrants further intensify supply concerns. CLSA recently downgraded YOFC from Buy to Hold, projecting global fiber capacity to expand 69% by 2028, which would gradually eliminate supply shortages. The broker warned that YOFC may face market share erosion risk and that earnings in the near two years could represent a cyclical peak.

While Morgan Stanley maintains a target price of HKD 230 and emphasizes that the AI-driven earnings growth trajectory remains intact, short-term expansion expectations and continued southbound fund net selling have sustained downward pressure on the stock.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)