Yangtze Optical Fibre and Cable (06869.HK/601869.SS) Popular Stock Analysis

As a leader in the optical fiber and cable industry, Yangtze Optical Fibre and Cable (06869.HK/601869.SS) has recently become a market favorite due to the recovery in demand for the cable sector driven by China’s steel export controls and nickel price rebound [1]. Taking A-share 601869.SS as a reference, it has risen 316.60% in the past year, 201.94% in 6 months, and 37.74% in the short-term 1 month [0]. From December 1, 2025 to January 5, 2026, the stock price rose 32.00%, reaching a high of $131.50, a low of $80.60, with an average daily trading volume of 19.32M, showing high trading activity [0].

Despite the strong stock price performance, the driving factors are mainly sector momentum and speculative sentiment. The current P/E ratio of 151.26x and P/B ratio of 7.32x are far higher than the industry average [0], while Q3 2025 EPS was only $0.23, 33.69% below expectations, and the net profit margin was only 4.16%, indicating weak profit growth [0]. Technically, the 20-day moving average is $108.75, and the stock price has fallen 4.44% in the recent 5 days, showing short-term profit-taking pressure.

• Overvaluation, bubble risk exists [0]
• Weak profitability, insufficient fundamental support [0]
• Short-term correction pressure is emerging

• Policy and demand drivers for the cable sector remain [1]
• Leading industry position may continue to benefit from sector recovery

Yangtze Optical Fibre and Cable’s recent sharp stock price rise is mainly driven by sector positives and momentum, but the contradiction between high valuation and weak profitability is prominent. Technically, short-term correction pressure is shown, with support around $108.75 and resistance around $131.50 [0]. Investors need to pay attention to sector dynamics and changes in the company’s fundamentals, and carefully evaluate risks and returns.