YOFC's stock plummeted 5.05% intraday, following a sharp rebound in the previous trading session.

The decline comes after the company reported Q1 revenue of RMB 3.695 billion, up 27.7% year-over-year, and net profit of RMB 495 million, up 226.4% year-over-year. However, UBS noted that Q1 net profit fell short of buy-side expectations of RMB 800 million to RMB 1 billion, anticipating negative short-term market reaction.

Huatai Securities pointed out that Q1 deliveries still contained lower-priced long-term agreement orders, and high-price orders are expected to be confirmed starting Q2, which should accelerate profit elasticity. The brokerage maintained its Overweight rating, citing dual growth drivers from core fiber optic cable business and diversified optical interconnect components.