Yangtze Optical Fiber's stock has increased by over 200% this year, and UBS has significantly raised its earnings per share forecast.

On April 3rd, Yangtze Optical Fiber and Cable (601869.SH) closed up 6.02%, reaching a new all-time high for the latest closing price, with a year-to-date increase of 202.94%.

Data shows that in February this year, China exported 3,779.9 tons of optical fiber valued at 790 million yuan, representing year-over-year growth of 63.6% and 126.8%. Converted into kilometers, China exported approximately 25.2 million core kilometers of optical fiber in February, accounting for about 65% of the country’s effective monthly optical fiber production.

According to the latest UBS research report citing industry research firm CRU data, the spot price of China G652.D bare optical fiber is projected to reach 83.40 yuan per kilometer by March 2026, a 165% month-over-month increase from January 2026, and a 418% year-over-year increase, with a cumulative rise of over 400% since May 2025. Prices for similar products in the European market increased by 136% during the same period, indicating a clear tightening of global supply.

UBS analysts believe that Yangtze Optical Fiber and Cable’s profitability is entering an upward correction cycle, with a significant upward revision of its 2026 earnings forecast to 4.98 yuan per share, well above the market consensus of 1.85 yuan. The company’s 2025 financial report shows revenue increased by 16.85% year-over-year, with gross profit margin rising to 30.7%, indicating ongoing fundamental improvement.

A report from China Galaxy Securities states that demand for data centers, interconnection (DCI), and all-optical networks has surged significantly. According to CWW and CRU data, global demand for optical fiber and cable is expected to grow by 4.1% year-over-year in 2025, with data center fiber and cable demand increasing by 75.9% year-over-year. This will drive global optical fiber demand to rise to 880 million core kilometers by 2027. On the supply side, due to the longer expansion cycle of optical fiber preform production (about 2 years), overall capacity expansion has been relatively conservative under previous price pressures, and the current market favors specialty optical fibers. Considering both demand and supply factors, this institution believes that optical fiber and cable prices still have potential for further increases.