YOFC (06869.HK) Hong Kong Stock Hotspot Analysis: Capital Inflow and Growth Logic

YOFC (06869.HK, 601869.SH) is a leading global enterprise in the field of optical fiber preforms, optical fibers, and optical cables, independently mastering three mainstream preform preparation technologies: PCVD, OVD, and VAD [2]. Since 2025, the stock has shown large fluctuations; in August, it recorded significant single-day gains of 10.41% and 16.71%, but overall it has been in a volatile trend [0]. Recently, the stock has become a hotspot in the Hong Kong market, driven mainly by:

1. Significant inflow of Stock Connect funds
   : Data as of November 21 shows that the shareholding ratio of Stock Connect increased by 1.36% in a single day, ranking first on the Increased Holdings List, with a 5-day cumulative increase of 2.41%, reflecting active layout by institutional funds [4][5]
2. Growing demand for AI data centers
   : In the AI era, the demand for high-speed transmission in data centers has surged, and the company’s products have technical advantages in this field [0]
3. Policy support
   : Benefiting from the promotion of the 5G+Industrial Internet policy, the prosperity of the optical communication industry has improved [0]
4. Sector rotation effect
   : Funds shifted from traditional sectors to technology growth stocks, and YOFC, as an industry leader, was favored [0]

In terms of cross-domain correlation, the rapid development of AI technology and the demand for the optical communication industry form a positive cycle, and the company, as an industry leader, is expected to continue to benefit [0]. Deep down, the continuous inflow of Stock Connect funds not only reflects recognition of the company’s fundamentals but also indicates a rebound in market preference for technology growth stocks [4]. In addition, the company holds core technologies across the entire industry chain and has competitive advantages in industry integration [2]

• Large stock price fluctuations; there were significant single-day rises and falls in 2025, and short-term market sentiment may affect price trends [0]
• Increased competition in the optical communication industry; if the speed of technological iteration is lower than expected, it may affect the company’s market share [0]

• Accelerated construction of AI data centers will continue to drive demand for optical fibers and cables [0]
• Release of policy dividends; the promotion of 5G+Industrial Internet brings new growth space for the company [0]
• Continuous inflow of Stock Connect funds is expected to improve stock liquidity and valuation levels [4]

As a leader in the optical communication industry, YOFC has benefited from growing AI demand, policy support, and inflows of Stock Connect funds, becoming a market hotspot recently. Although there are risks of stock price fluctuations, the long-term growth logic is clear. Investors need to pay attention to changes in industry demand and the progress of the company’s technological iteration to seize investment opportunities [0][2][4]