Equity Snap: YOFC (6869 HK) 2Q26 Preliminary Profit Beat

Research evidence excerpt

Equity Snap: YOFC (6869 HK) 2Q26 Preliminary Profit Beat

14 July 2026

Equity Snap: YOFC (6869 HK) Equities Electronic Equipment &

Instruments

2Q26 Preliminary Profit Beat China

◆ YOFC released positive profit alert; the 2Q midpoint profit Charlie Bai*

was 84%/90% ahead of HSBCe/consensus Analyst, Asia Telecoms The Hongkong and Shanghai Banking Corporation Limited

charlie.bai@hsbc.com.hk

+852 22887184

YOFC (6869 HK, HKD153.90, Buy, TP HKD277.00; 601869 CH, CNY400.18, Buy,

Piyush Choudhary*, CFA

TP CNY489.00) Head of Asia Telecoms

The Hongkong and Shanghai Banking Corporation

(Priced as of 14 Jul 2026)

Limited, Singapore Branch

piyush.choudhary@hsbc.com.sg

YOFC is a global low-cost supplier with leading capacity, a global footprint, core +65 6658 0607

technologies, and vertical integration across the data centre optical supply chain. Apurva Chandgothia*

Associate

2Q26 Profit alert indicates a strong profit beat: On July 14, YOFC announced a Bangalore

positive profit alert, indicating total net profit in 1H26 to reach Rmb2.4bn~3.0bn

(711~914% growth y-o-y). This implied a 2Q26 profit of Rmb1.9bn-2.5bn, with the * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations

mid-point of Rmb2.2bn tracking ahead of HSBCe/Bloomberg Cons

(Rmb1.19bn/1.16bn) by 84%/90%. At mid-point, 2Q profit grew 1,431% y-o-y and

345% q-o-q.

Key debates: 1) whether the capacity expansion plans of smaller players and new

entrants in China can be executed, 2) final bidding results of China Mobile's 2026

optical fibre cable tender, and 3) geopolitical risks associated with Chinese OEMs'

US data centre market expansion.

The catalysts: 1) fibre contracts from US hyperscalers, 2) LTA price hikes initiated