Analysis of 06869.HK (YOFC) as a Hot Stock: Drivers and Market Performance

Yangtze Optical Fibre and Cable Joint Stock Limited Company (YOFC) is a leading manufacturer of optical fibre preforms, optical fibres, and optical cables in China, with a complete industrial chain layout [0]. The company is dual-listed on the Hong Kong Stock Exchange (06869.HK) and the Shanghai Stock Exchange (601869) [0][2], and its headquarters is located in the East Lake High-Tech Development Zone, Wuhan City, Hubei Province [0].

1. Strong Southbound Capital Holdings
   : Southbound Capital holds a stake of up to 59.08%, showing high recognition of the company [0][3][4]. It increased holdings by 1.36% in a single day and 2.41% over 5 days [0].
2. AI-Driven Industry Demand
   : The optical communication industry benefits from the explosion of AI computing power demand and the acceleration of digital economy infrastructure construction [0][6]. The company’s Q3 operational performance in the AI communication field exceeded expectations, attracting key market attention [0].
3. Robust Financial Performance
   : In the first three quarters of 2025, operating revenue was 10.275 billion yuan, a year-on-year increase of 18.18%; net profit was 470 million yuan [0][5].
4. Resilient Stock Price
   : The stock price performance is relatively resilient to declines, ranking among the top in the list of Southbound Capital net purchases [0][6].

The company’s share price has a 52-week range of HK$10.64-65.00, with high volatility [0][1].

The hot performance of 06869.HK is mainly due to the continuous increase in holdings by Southbound Capital, AI-driven industry demand growth, and strong financial performance.