Yangtze Optical Fibre and Cable (YOFC) stock plummeted 10.12% during early intraday trading, extending recent declines for the fiber optic manufacturer.
The sharp drop follows YOFC's disappointing first-quarter earnings report, where net profit of RMB 495 million significantly missed market expectations of RMB 800-1,000 million. Additionally, concerns about the global fiber optic supply chain have intensified after 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.
While YOFC has demonstrated strong fundamentals with 226.4% year-over-year net profit growth and a record-high 41.51% gross margin, the market continues to reassess valuations amid doubts about the sustainability of the AI infrastructure boom. The stock has now retreated over 25% from its historical high as profit-taking persists following the earnings disappointment.