Yangtze Optical Fibre and Cable JSC Ltd (6869.HK): 3Q26 Results Upbeat, AI-related Optical Fibers of Strong Demand

Revenue reached Rmb9.3bn, up 139% YoY. Management said the growth was driven by an improved revenue mix in its main business, alongside relatively rapid YoY increases in both sales volume and ASP of major optical products. Gross margin was 57.4% in 3Q26, a significant increase vs. 29.7% in 3Q25, but slightly lower than 60.5% in 2Q26. The opex ratio fell to 12.66% in 3Q26, from 16.02% in 1H26. Net profit of Rmb3.2bn was up 1,742% YoY, due mainly to rapid revenue growth and significant margin expansion. Revenue was 14% ahead of our estimate, while net profit beat by 27%. Accelerated deployment of AI clusters and data centers has triggered a sustained industry upcycle, materially elevating demand for AI-related optical fibers.