UBS has released a research report maintaining its profit forecast and target price of HKD 290 for YOFC (06869), alongside a "Buy" rating. The company's first-quarter results fell short of market expectations, with revenue reaching RMB 3.7 billion, a 28% year-on-year increase. Gross profit was RMB 1.5 billion, up 90% year-on-year, while net profit rose 226% to RMB 495 million. The bank anticipates that continuous optimization of the product mix and the gradual reflection of higher fiber prices in contract renewals will lead to further improvements in gross margin in the coming quarters. UBS noted that YOFC's Q1 net profit of RMB 495 million was below the buy-side market expectation of RMB 800 million to 1 billion, predicting a negative short-term market reaction. However, the bank expressed confidence in the company's profit growth over the next few quarters, stating that the full impact of rising fiber prices will take time to materialize. With sustained growth in data center demand, UBS believes YOFC is well-positioned to meet its full-year forecast. Following a 5.1% lower open this morning, YOFC's shares fell as much as 15% intraday to HKD 196.1, and were recently trading at HKD 200.2, down 13.3%, with a turnover of HKD 6.969 billion.