Shares of YOFC (06869) opened lower but climbed steadily through the morning, gaining more than 5% during the afternoon session before settling. At the time of writing, the stock was up 4.17%, trading at HK$184.80 with turnover reaching HK$4.127 billion.

On the news front, YOFC unveiled its new line of polarization-maintaining fiber products at the 27th China International Optoelectronic Expo (CIOE 2026), introducing the CopackAlign brand. Zhuang Dan, the company's Executive Director and President, noted that CPO and NPO technologies are accelerating from industry consensus toward large-scale deployment, with polarization-maintaining fiber emerging as a critical requirement for AI optical interconnects.

Citing earlier analysis from Founder Securities, the adoption of CPO/NPO is expected to significantly boost demand for polarization-maintaining fiber, and given the premium pricing of such fiber, profit margins are projected to remain attractive.

Adding to the positive sentiment, the broader optical fiber industry continues to experience robust momentum. Corning recently announced a long-term agreement to supply data center interconnect fiber to Zayo, followed by a multi-billion-dollar supply deal with Verizon to deliver over 80 million miles of high-density fiber by 2032. Meanwhile, China Mobile has disclosed the list of winning bidders for its 2026-2027 general optical cable procurement project, setting a maximum bid ceiling of RMB 7.0998 billion (excluding tax) for a total procurement volume equivalent to 69.222 million core-kilometers. Based on calculations, the average unit price for this procurement translates to approximately RMB 102.56 per core-kilometer, representing a near 90% increase from the previous procurement round.