Shares of YOFC (HKEX: 06869) rose close to 8% during the morning trading session. At the time of writing, the stock was up 6.86% to HK$26.80, with a turnover of HK$2.577 billion.

The underlying driver is the price surge for optical fiber preforms, the core "mother material" for fiber manufacturing. These preforms can be drawn into thousands of kilometers of optical fiber at high temperatures and account for approximately 70% of the profit within the fiber optic industry chain.

Reports indicate that the most sought-after product currently is the "A2-class fiber preform." Optical fiber drawn from this type of preform offers superior bending resistance, making it widely applicable in AI computing infrastructure and residential broadband deployment.

Data shows that the quoted price for A2-class preforms has surged from a range of RMB 22 to 30 per equivalent core kilometer at the beginning of 2025 to RMB 160 per equivalent core kilometer in 2026, representing an increase of nearly 550%.

Industry insiders suggest that the tight supply of preforms is expected to persist in the short term, solidifying in phases. Companies possessing preform production capacity are poised to be the primary beneficiaries of this market trend.

Public information reveals that YOFC is the only company globally that has mastered the three major mainstream preform manufacturing processes: PCVD, OVD, and VAD. This has allowed the company to build a comprehensive competitive barrier across the "preform-fiber-cable" industry chain, achieving a 100% self-sufficiency rate for preforms and ranking first globally in production capacity scale.

Furthermore, in the more technologically demanding market for G.654.E ultra-low loss premium optical fiber, the company holds a dominant market share estimated between 80% and 90%. This positions YOFC to fully capitalize on the surge in demand for high-end optical fiber driven by the construction of AI computing infrastructure.