Understanding the Market | YOFC fell over 4% again, down 40% from the September high, with both fiber volume and price declining and shareholders liquidating their positions dragging down the stock price
YOFC's stock price fell more than 4% again, hitting a low of HKD 38.5 during the session, down over 40% from the September high of HKD 65. As of the time of writing, the stock price is reported at HKD 38.88, with a trading volume of HKD 582 million. Nomura's research report pointed out that the results of China Mobile's fiber optic bidding show a decline in YOFC's market share and selling price, which is expected to put pressure on profitability, downgrading the rating from "Buy" to "Neutral," with the target price raised to HKD 52. Meanwhile, Draka Comteq B.V. reduced its holdings in YOFC by 37.5953 million H shares through block trading
According to Zhitong Finance APP, YOFC (06869) has fallen over 4% again, hitting a low of HKD 38.5 during the session, down more than 40% from the high of HKD 65 in September. As of the time of writing, it is down 4.33%, trading at HKD 38.88, with a transaction volume of HKD 582 million.
On the news front, Nomura previously released a research report stating that the recent fiber optic bidding results announced by China Mobile show that YOFC's market share and average selling price have both declined, which may put pressure on profits starting from the third quarter of this year. The firm believes that the stock price has already reflected the positive factors of AI business expansion, downgrading its rating from "Buy" to "Neutral," while significantly raising the target price from HKD 18.6 to HKD 52.
It is worth noting that on September 19, Draka Comteq B.V. sold 37,595,300 H-shares of YOFC through block trading, accounting for 5% of the total share capital, reducing its H-share count to zero. As of the end of March this year, Draka Comteq B.V. and China Huaxin Post and Telecommunications Technology Co., Ltd. were the largest shareholders of YOFC, each holding 23.73%. From April 17 to September 19, Draka Comteq B.V. cumulatively reduced its holdings in YOFC H-shares by nearly 180 million shares, accounting for 23.73% of the company's total share capital
