Yangtze Optical Fibre and Cable (YOFC) stock soared 5.58% during intraday trading on Wednesday, as the optical communication sector experienced a broad-based rally.
The surge comes amid continued AI data center buildout driving high demand for fiber optic infrastructure, with supply-side constraints remaining prominent as industry capacity recovery lags behind demand growth. Analysts note that supply shortages are expected to persist due to structural bottlenecks in optical preform expansion.
YOFC reported strong financial performance with a record-high gross margin of approximately 41.5% in the first quarter and net profit attributable to shareholders surging 226.4% year-over-year. Additionally, the company was recently included in both the MSCI Emerging Markets Index and the HKEX Tech 100 Index, bringing expectations of passive fund allocation.