DBS Bank Upgrades Yangtze Optical Fibre And Cable Joint Stock Company to Buy from Hold; Price Target is HK$20.20

The key driver of earnings at Yangtze Optical Fibre and Cable Joint Stock, also known as YOFC, should be artificial intelligence, Nomura analysts say in a research report as they maintain a buy rating on the stock. Regarding AI, management has noted that hallow-core fiber, which offers lower latency for data center transmission, may begin commercialization this year, and YOFC holds a strong leadership position in this segment, the analysts say. Additionally, YOFC's subsidiaries' optical transceiver and high-speed copper businesses could see further upside, they add. Nomura raises the stock's target price to HK$18.60 from HK$15.00, citing a higher estimated 2026 EPS forecast. Shares are up 2.9% at HK$16.26. (ronnie.harui@wsj.com)

Yangtze Optical Fibre and Cable Joint Stock, also known as YOFC, is poised to benefit from buoyant demand for AI networking products from AI data-center customers worldwide, Nomura analysts say in a research report. With hyperscale cloud and AI companies continuing to invest proactively in large-language-model training, demand for high-speed, low-latency networking products will probably stay strong in 2025, the analysts say. Given the growing trend of adopting high-speed optical and copper products for large AI data-center clusters, subsidiaries Everprotech and Broadex are likely key beneficiaries. Nomura raises the stock's rating to buy from neutral and the target price to HK$15.00 from HK$13.50. Shares are 6.8% higher at HK$13.12. (ronnie.harui@wsj.com)