With the start of the US Fed downgrade week, market volatility is expected to improve, coupled with Hong Kong stock valuations reaching historic lows, market sentiment recovers, prompting a strong rebound in the stock quality symbol. The other company with home lighting cable routes is the world's leading Fiber-Optic Cable Company―the world's leading Fiber-Optic Cable Company― $YOFC(06869.HK)$ Increased by more than 400% year-to-date.

What are the reasons for the long flight climb? Is there a chance to ride? This week's Event will be a quick discussion with the world. We will share the Industry Highlights, Corporate Business Basics, Growth Points and Trade Opportunities.

Fiber-Optic Cable Fabrication+Sales Volume Leader

$YOFC(06869.HK)$ A leading supplier of fiber prefabrication rods, optical fibers and fiber cables worldwide. This product, in the abstract, actually runs through the way we live our lives, like domestic fiber optic broadband, the specialized network of various telecommunications companies, and the seafloor cable that helps us access foreign websites, and the real world financial trade. With great white speech, optical fiber communicates the world's plumbing, transmitting information to our highly efficient and stable location.

In the Fiber-Optic Cable industry chain IndustryChain, Upstream is the raw material supplier, the Afloat is the prefabrication of fiber prefabrication, and the downstream optical fiber cable is manufactured. Among them, the prefabricated rods are the highest value, and the most complex of technical walls, and the prefabricated rods can be made of silken fibers and fused cables. In the whole value chain, the profit of fiber replacement rod, fiber optic cable is divided into 7:2:1, and the profit of the reserve rod is the highest. In order to learn the art of fiber prefabrication, to have the right to value, to get to the heart of the fiber industry. This is the advantage of Longplane, which is currently one of the world's leading PCVD, OVDVAD, and three companies in the prefabrication and practical industries. It has the world's largest fiber pre-production base in the North Delta. Since 2016, Longplane has been the world's first in sales for 8 consecutive years of fiber optic cable.

Out there, long-haul optical fiber technology, which is expected to be the next generation of optical communications, will be recognized as the next technology. Unlike traditional glass fiber (unlike glass conductors, the fiber of air glass fiber is medium in diameter. Using a special microstructure design, light transmission in the air is limited, and the loss of information during transmission can be greatly improved over time. The application landscape of optical fiber is widespread, in areas where networking is in extreme demand, compared to AI Power Data Center Interconnection, High Frequency Financial Trade, Mass Communication, and High Power Laser Transmission.

Nangyu's Business Editor

According to the company's Business Conditions, the company's revenue for the past three years has been over 12 billion dollars, which is a marked improvement compared to 2019-2021. With a year-over-year revenue of RMB12.197 billion, down 9%, the global Fiber-Optic Cable market is mainly due to the need for soft demand. Industry competition is driven by product price constrictions led by the industry.

Far from flying too far is tackling the challenges of multi-component layouts, such as accelerating new business in Silicon Carbide, Laser, and Marine Cables. Combined with the newly released 2025H1 revenue data, the company's H1 revenue was 6.384 billion, compared to a 19% year-over-year growth, and other revenue improvements could be seen.

Looking at details, Longfly's main business is divided into two main Sectors: Traditional Core Business (Optical Transmission Products) and New Interest Growth Business (Optical Interconnects, Aerial Optical Fibers, Semiconductors, etc. According to the data released in 2025H1, the Light Transmission Products are the Revenue Block Orders, accounting for more than 60% of the Luminous Interconnected Components Business at 22%, becoming the new growth point of the company.

According to the Business Revenue Structure for 2019-2023 (PS: Undisclosed detailed data for 2024-2025), Fiber optic cable, fiber and fiber prefabrication have the highest revenue ratio, the gross margin of other fiber and fiber prefabrication rods is 53%, far higher than other businesses, which is the core source of the lubrication of long-haul aircraft, this is from Lateral identification of the unbiased force in the optical fiber and fiber predictive band area.

Base plate: optical transmission products

Optical Transmission Products (Fiber-Optic Cable) are the foundation of the Company's revenue and profit. The main customers of this division are the three major domestic operators: China Mobile, China Telecom, China Telecommunications, China Telecommunications, and China Telecommunications, which are due to purchase orders from these three major customers.

In the first half of this year, optical transmission products generated real revenues of 3.847 billion USD, with a 9% year-on-year gross margin of 29.6%, compared to a decrease of 4.5% year-on-year gross margin. The Business is currently facing downward pressure on the China Mobile and Cargo business aggregates (the average benchmark price for cable in 2025 fell by about 26% year-on-year), and the company's total in the latest merger fell by about 20% from the previous one to 14%.

In line with the price pressure of the traditional fiber field, Longplane uses the stress of airfoil fiber technology as a key way to break the curve, accelerating other testing and commercial applications. In August this year, China Mobile, China Mobile, established the first air fiber optic cable in Hong Kong, Australia. The main service of the route is data transmission between Shenzhen and Hong Kong Securities Trading, delaying the transfer time of the Trans-Hong Kong cross-border securities transaction to 1 millisecond, and fiber loss to 0.09dB/km, breaking the record for the lowest loss of global commercial Fiber-Optic Cable.

The success of the empty core fiber test is good news that has driven the share price up, but it is far from making money at scale — mass production. Whether it can be commercialized smoothly, it will be the key to determining future stock price highs, and investors can focus on further progress.

Growth Points: Optical Interconnect Business and Others

The Optical and Interconnected Components Business is a new highlight of the company's performance. In 2025H1, real revenues of 1.444 billion, year-on-year gross margin growth of 54.6% was approximately 40.7%, and year-on-year gross margin increased by 18%. The performance of other Chinese companies was outstanding, with real income of 1.04 billion in the first half of the year, a year-on-year increase of 145%, a net profit of 0.297 billion and a year-on-year growth of 299 percent.

The Precision Card in the Optical Components Business is a development benefit from AI-based power to solve transmission issues inside data centers efficiently, and AOC products in the past have been shipped directly to many leading AI Server vendors.

Apart from that, Longplane is advancing its multi-integration strategy through joint purchase+autonomous development. NOT ONLY BY ACQUIRING FLUORESCENT LASERS, THE COMPANY HAS INTEGRATED UPSTREAM APPLICATIONS OF INDUSTRIAL LASERS TO EXTEND THE TECHNOLOGY TO HIGH-PURITY ROCK MATERIALS AND SEABED CABLE ENGINEERING. At the same time, other third-party semiconductors Wuhan are already well capitalized. The investment period of these new business modes is limited in terms of future performance, but we do not lay a solid foundation for the long-term growth of the company.

Investment strategy

In combination with the technical side, $YOFC(06869.HK)$ After the initial uptrend was confirmed in June, a strong uptrend was extended immediately. After the announcement of its results on August 29, Longplane's Optical Interconnects and Aerial Rail Fibre Concept have been a symbol of Hong Kong's stock market loss, attracting funds from a large amount of Thematic Investment and Trend Investments, once again helping the share price to reach the high of $65.

As a result of the consolidation, the Longflight Daily Line segment remains on an upward trend, and Hold Positions fellowinvestor can continue to stay afloat for the time being. Almost four trading days saw a short dip in the share price, but the volume shrank rapidly, indicating a small increase in pressure, and shareholder selling, and a larger increase in the margin.

Other times, for fellow investors who are not in the car, it is possible to note the EMA50 median support position, which is currently the reference price of 41.6 USD, which can be seen as a key buy point after the pullback. But if the stock price continues to fall along the EMA50 line, the EMA12 and 50 lines form a fork, it is necessary to warn the downward trend, and to implement a strategy to stop the erosion. (PS: THE ABOVE TECHNICAL ANALYSIS ONLY WORKS AS A TEACHING REFERENCE, NOT AS AN ACTUAL OPERATING RECOMMENDATION)

Risk Disclosure: This content does not constitute research reports and is for reference only and does not serve as a basis for any investment decisions. The information referred to in this article is not a comprehensive description of the securities, markets or developments described. Although the source of information is considered reliable, the accuracy or completeness of the above is not guaranteed. In addition, the accuracy of any statements, opinions or predictions made in this article is not guaranteed.