On June 1, Yangtze Optical Fibre and Cable (YOFC) declined 4.31% in regular trading, trading at 210.0 HKD/share, with trading volume of HKD 1.262 billion. The stock has now retreated over 25% from its historical high of 283 HKD.

On the news front, the decline extends a persistent profit-taking trend following a Q1 earnings miss and lingering concerns over the global fiber optic supply chain. YOFC reported Q1 net profit of RMB 495 million, significantly below market buy-side expectations of RMB 800-1,000 million, triggering negative sentiment. Additionally, Japan-based fiber cable maker Fujikura saw its stock nearly halve in late May, fueling fears that data center projects face delays due to material bottlenecks and supply chain constraints, casting doubt on the sustainability of the AI infrastructure boom.

The stock briefly rebounded on May 29 amid recognition of strong fundamentals including 226.4% YoY net profit growth and record-high 41.51% gross margin, but selling pressure resumed as valuation reassessment continues. UBS previously flagged a near-term negative market reaction to the earnings shortfall.

(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.)