Long Fly Fiber Optic (06869.HK): 2024 Performance Review & AI-Driven Growth Prospects

This analysis is based on Tushare dc_hot (East Money App Hot List, HK Market) event source. Long Fly Fiber Optic (06869.HK) reported a challenging 2024 with 8.6% YoY revenue decline and 50.6% YoY net profit drop due to industry cyclicality [0]. However, the AI wave is seen as a potential turning point [1], with 2025 demand recovery expected from domestic computing power networks and overseas 5G penetration [0].

Long Fly Fiber Optic’s 2024 financial results showed double-digit declines: revenue fell to 121.97 billion yuan (-8.6% YoY) and net profit to 5.81 billion yuan (-50.6% YoY) [0]. Gross margin improved by 0.7 percentage points to 6.1% reflecting cost control [0], while operating cash flow remained strong at 17.83 billion yuan (+17.8% YoY) [0].

The fiber optic industry faced weak demand in 2024 with global FTTH coverage at only 30% [0]. However, the AI wave is driving data center infrastructure demand [1], benefiting Long Fly Fiber Optic as a leading domestic player with 30% overseas revenue share [0].

1. Resilient Cash Flow
   : Strong operating cash flow amid profit decline highlights operational resilience [0].
2. AI Catalyst
   : AI-driven data center investments are expected to reverse demand trends [1].
3. Overseas Exposure
   : 30% overseas revenue presents both growth opportunities and geopolitical risks [0].

• Cyclical Volatility
  : Dependence on communication capital expenditure leads to industry fluctuations [0]
• Technology Uncertainty
  : 6G route ambiguity impacts long-term growth [0]
• Receivables Risk
  : 59.05 billion yuan receivables (48.4% of revenue) pose liquidity concerns [0]
• Geopolitical Tensions
  : Overseas revenue exposure increases vulnerability [0]

• AI Demand Recovery
  : AI-related computing power network investments to drive 2025 growth [1]
• Overseas Expansion
  : Emerging markets offer untapped fiber infrastructure potential [0]
• Product Upgrades
  : Technical reserves enable high-end product transitions (marine/special fibers) [0]

Long Fly Fiber Optic (06869.HK) faced 2024 challenges due to industry cyclicality but maintains strong cash flow and leading market position. The AI wave provides a mixed outlook with demand recovery prospects balanced against ongoing risks. Monitor industry trends, overseas progress, and new product developments for growth signals.