Yangtze Optical Fibre & Cable (6869 HK / 601869 CH) H/A: Initiate at Buy/Buy: Underappreciated edges over peers

研报英文原文证据摘录

Yangtze Optical Fibre & Cable (6869 HK / 601869 CH) H/A: Initiate at Buy/Buy: Underappreciated edges over peers

is a global capacity leader, and it is raising US data centre exposure: We 3m ADTV (Sum) (H / A) 6361 / 102415

think YOFC is a global low-cost supplier due to its economies of scale. Its nine FINANCIALS AND RATIOS (CNY)

overseas production bases, mastery of core fibre preform processing technologies, Year to 12/2025a 12/2026e 12/2027e 12/2028e

HSBC EPS 1.43 9.11 13.07 13.44

and continuous vertical integration (e.g., the acquisition of EverProX) enable a HSBC EPS (prev) na na na na

product mix upgrade (e.g., polarization-maintaining fibre). We think it is raising US Change (%) na na na na

Consensus EPS 1.11 6.47 10.23 11.98

data centre exposure via multiple channels, including bundling with EverProX’s MPO

Source: LSEG, HSBC estimates

products, and indirect sales to US hyperscalers via optical module suppliers and

interconnect solutions providers. Furthermore, among the big four Chinese optical Charlie Bai*

fibre OEMs, Hengtong and FiberHome are on the US entity list, as is ZTT’s Analyst, Asia Telecoms

The Hongkong and Shanghai Banking Corporation Limited

submarine cable subsidiary. Therefore, we think YOFC stands a better chance of charlie.bai@hsbc.com.hk

expanding its US data centre market share than its Chinese peers. +852 22887184

Piyush Choudhary*, CFA

Initiate on H-/A-shares at Buy/Buy: We forecast profit to be up 13x in the next two Head of Asia Telecoms

years (vs the stock being up c3x YTD), hence we see the stock as favourably valued The Hongkong and Shanghai Banking Corporation

Limited, Singapore Branch

at 10x 2027e PE (lower than global peers). Our FY26-28 net profit estimates are 3%- piyush.choudhary@hsbc.com.sg