YOFC Shares Drop Over 6% Amid Concerns Over Carrier Procurement Delays and Price Pressure

Stock News
Apr 13

YOFC (06869) fell more than 6% in early trading, following a decline of over 12% during the previous session. At the time of writing, the stock was down 4.59% to HK$21.22, with a turnover of HK$2.598 billion. Market speculation suggests the recent downturn in the optical fiber sector is linked to potential delays in carrier centralized procurement, which could impact revenue for related companies. However, YOFC stated that no official procurement announcements have been made, so delays cannot be confirmed. Official updates from carriers should be relied upon for accurate procurement information. China Securities Co. noted that based on February fiber export data, approximately 80% or more of China's monthly fiber output may now be exported, significantly reducing the proportion of domestic carrier purchases. The firm suggested that the sector's recent decline may be due to upcoming first-quarter earnings reports and substantial prior gains, but the optical fiber cable industry remains robust. The current adjustment could present a buying opportunity, with continued positive outlook.

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