Yangtze Optical Fibre and Cable (06869.HK) Popular Stock Analysis Report

Yangtze Optical Fibre and Cable (06869.HK) is a leading enterprise in the optical communication/telecom equipment sector. In 2025, due to the explosion of AI-driven optical communication demand, the sector’s annual growth exceeded 191%, and the company’s stock price led the sector with a cumulative increase of nearly 334% within the year [5][9]. Technically, the company has achieved global leadership in the hollow-core optical fiber field. In 2025, it helped China Mobile, China Telecom, and China Unicom complete the launch of the first commercial hollow-core optical fiber line and promoted its industrialization [4]. This technological breakthrough has strengthened the market’s expectations for the company’s growth prospects. On the capital side, southbound funds continue to focus on the optical communication sector, and the company’s stock price has risen by 60.49% cumulatively over three consecutive weeks [4]. In terms of price and trading volume, on December 29, 2025, the company’s H-shares fell 8.44% in the afternoon, hitting a low of HK$51.55, with a trading volume of HK$1.2 billion on the day, which was significantly higher than the daily level, reflecting intensified long-short divergence [3].

1. The long-term computing power demand of the AI industry is the core driving force of the optical communication sector. As a leading enterprise with advanced technology, Yangtze Optical Fibre and Cable will continue to benefit from this trend.
2. The commercial breakthrough of hollow-core optical fibers not only enhances the company’s technical barriers but also provides key technical support for the development of AI computing power networks, which is of strategic significance.
3. The continuous inflow of southbound funds shows the confidence of mainland investors in the Hong Kong stock optical communication sector, but after the short-term sharp rise in stock prices, the pressure of profit-taking has increased.

• Risks
  : The short-term stock price increase is too large, and the valuation may deviate from the fundamentals [5][9]; intensified industry competition may put pressure on product prices and profit margins; there is uncertainty about the progress of large-scale commercialization of hollow-core optical fibers; shareholder Changjiang Communications reduced its holdings of 1.1 million A-shares, which may trigger short-term emotional fluctuations [2].
• Opportunities
  : Long-term growth in optical communication demand driven by the AI industry; the company’s technical advantages may promote market share growth; liquidity support brought by continuous attention from southbound funds.

Yangtze Optical Fibre and Cable (06869.HK) has become a popular Hong Kong stock due to AI industry dividends and technological breakthroughs, with strong stock price performance in 2025. However, the excessive short-term increase has caused fluctuations, and risks such as valuation, technology implementation, and industry competition need to be watched. This report provides an objective analysis background and does not constitute investment advice.