YOFC (06869.HK) Recent Market Performance and Outlook Analysis

YOFC (06869.HK) has shown short-term volatility recently. After hitting a recent high of HK$57.55 on December 22, 2025, it closed at HK$54.600 on December 30, with a drop of 5.13%[0]. Despite the stock price pullback, southbound funds (mainland investors) still recorded a net inflow of HK$416 million that day, reflecting strong buying interest[0]. Earlier, on December 24, southbound funds also net bought HK$26.92 million, showing continuous attention and confidence from mainland investors in the stock[0].

On the business front, the company recently signed an agreement for a high-end submarine optical cable manufacturing and intelligent operation project in Yancheng, Jiangsu, marking its expansion into high-value-added areas. This move is expected to become a new growth driver for the company[0]. Additionally, the industry trends of rising optical fiber prices and strong market demand also support the company’s traditional business[0].

1. Short-term divergence between southbound funds and stock price
   : Southbound funds made large net purchases during the stock price decline, indicating that mainland investors may value the company’s long-term prospects more, and short-term fluctuations did not shake their confidence.
2. Diversified business layout
   : The signing of the high-end submarine optical cable project is an important expansion of the company’s traditional optical fiber business, which is expected to reduce the risk of business singularity and enhance long-term competitiveness.
3. Differentiated market sentiment
   : On one hand, continuous inflow of southbound funds shows optimistic sentiment; on the other hand, the high P/E ratio of about 169 times for the company’s A-share may trigger discussions and concerns about valuation rationality[0].

1. Valuation pressure
   : The company’s A-share has a high P/E ratio of about 169 times, which may face valuation correction risks if market sentiment shifts[0].
2. Short-term volatility
   : The stock price has adjusted after a rapid rise recently, which may face higher volatility risks in the short term[0].

1. Industry demand support
   : Rising optical fiber prices and strong market demand provide a favorable environment for the development of traditional businesses.
2. New business growth potential
   : The advancement of the high-end submarine optical cable project is expected to open a new revenue growth path for the company.
3. Liquidity support from southbound funds
   : Continuous inflow of southbound funds provides certain liquidity support for the stock price.

• On December 30, 2025, YOFC (06869.HK) closed at HK$54.600, down 5.13%.
• Southbound funds net bought HK$416 million that day, and had net bought HK$26.92 million on December 24.
• The company signed a high-end submarine optical cable manufacturing and intelligent operation project in Yancheng, Jiangsu.
• The company’s A-share P/E ratio is about 169 times, which is at a high level.
• Rising optical fiber prices and strong market demand support business development.