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Yangtze Optical Fibre and Cable Joint Stock Co Class H (HK:6869)
OTHER OTC:6869

Yangtze Optical Fibre and Cable Joint Stock Co (6869) AI Stock Analysis

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HK:6869

Yangtze Optical Fibre and Cable Joint Stock Co

(OTC:6869)

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Outperform 71 (OpenAI - 4o)
Rating:71Outperform
Price Target:
HK$57.00
▲(76.25% Upside)
Yangtze Optical Fibre and Cable Joint Stock Co shows strong technical momentum and robust cash flow generation, which are significant positives. However, high valuation metrics and declining profit margins present risks that could impact future performance.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong demand for optical fiber products, supporting long-term business expansion and market position.
Cash Flow Generation
Strong cash flow generation enhances financial flexibility, allowing for reinvestment in growth opportunities and debt management.
Market Position
A leading market position in optical fiber manufacturing secures competitive advantages and long-term contracts, supporting stable revenue streams.
Negative Factors
Declining Profit Margins
Decreasing profit margins suggest rising costs or pricing pressures, which could impact long-term profitability if not addressed.
Increased Leverage
Higher leverage can strain financial stability, limiting the company's ability to invest in growth and manage economic downturns.
Earnings Decline
A significant decline in EPS growth reflects challenges in maintaining profitability, which may affect investor confidence and future growth.

Yangtze Optical Fibre and Cable Joint Stock Co (6869) vs. iShares MSCI Hong Kong ETF (EWH)

Yangtze Optical Fibre and Cable Joint Stock Co Business Overview & Revenue Model

Company DescriptionYangtze Optical Fibre and Cable Joint Stock Co., Ltd. (stock code: 6869) is a leading manufacturer of optical fiber and cable products in China. Established in 1988, the company operates primarily in the telecommunications sector, focusing on the production of optical fiber preforms, optical fibers, and a variety of optical cables that serve both domestic and international markets. Its core products support the growing demand for high-speed internet and communication networks, positioning Yangtze Optical Fibre as a key player in the industry.
How the Company Makes MoneyYangtze Optical Fibre generates revenue primarily through the sales of its optical fiber and cable products to telecommunications operators, internet service providers, and infrastructure projects. The company benefits from several key revenue streams, including the manufacturing of optical fibers, which are essential for high-speed data transmission, and the production of various types of optical cables used in telecommunications and data centers. Additionally, Yangtze Optical Fibre has established significant partnerships with major telecom operators in China and abroad, helping to secure long-term contracts and bulk orders. The ongoing expansion of 5G networks and the increasing demand for broadband services further contribute to the company's earnings, as these trends drive the need for enhanced fiber optic infrastructure.

Yangtze Optical Fibre and Cable Joint Stock Co Financial Statement Overview

Summary
Yangtze Optical Fibre and Cable Joint Stock Co presents a robust financial profile with consistent revenue growth and healthy profitability margins. The balance sheet shows a stable capital structure, though rising leverage warrants attention. Cash flow generation has improved significantly, but the conversion of earnings to free cash flow remains an area to watch.
Income Statement
Yangtze Optical Fibre and Cable Joint Stock Co shows a solid income statement with a consistent revenue growth rate of 4.17% in the TTM period. The gross profit margin of 25.01% and net profit margin of 6.10% indicate healthy profitability. However, the EBIT margin of 9.79% suggests room for improvement in operational efficiency. The company has demonstrated resilience with positive revenue growth after a decline in the previous year.
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.93, which is manageable but has increased from previous years, indicating rising leverage. The return on equity (ROE) of 6.65% is moderate, showing potential for higher profitability. The equity ratio of 36.13% suggests a balanced capital structure, though there is room to strengthen equity further.
Cash Flow
The cash flow statement reveals strong free cash flow growth of 39.33% in the TTM period, indicating improved cash generation. The operating cash flow to net income ratio of 0.20 suggests efficient cash conversion, although the free cash flow to net income ratio of 0.39 indicates that a significant portion of earnings is not translating into free cash flow. This could be a potential area of concern if not addressed.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue14.14B12.20B13.35B13.83B9.54B8.22B
Gross Profit3.91B3.33B3.27B3.24B1.87B1.65B
EBITDA1.85B1.84B2.30B1.95B741.30M1.01B
Net Income588.74M675.88M1.30B1.17B708.51M543.68M
Balance Sheet
Total Assets38.11B31.73B29.14B28.20B19.48B15.86B
Cash, Cash Equivalents and Short-Term Investments6.20B4.73B4.94B5.67B4.30B2.34B
Total Debt12.88B6.94B8.50B6.48B4.55B2.13B
Total Liabilities20.43B16.15B14.74B13.67B8.89B6.47B
Stockholders Equity12.93B11.63B11.31B10.14B9.78B9.05B
Cash Flow
Free Cash Flow1.67B397.55M-748.28M-633.67M-546.85M-468.25M
Operating Cash Flow3.01B1.78B1.51B1.59B526.74M140.87M
Investing Cash Flow-1.26B-2.30B-2.61B-2.19B-1.39B-1.55B
Financing Cash Flow-1.09B-25.29M643.40M1.98B2.29B719.48M

Yangtze Optical Fibre and Cable Joint Stock Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price32.34
Price Trends
50DMA
40.87
Positive
100DMA
43.95
Positive
200DMA
31.19
Positive
Market Momentum
MACD
2.91
Positive
RSI
53.69
Neutral
STOCH
31.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6869, the sentiment is Positive. The current price of 32.34 is below the 20-day moving average (MA) of 49.35, below the 50-day MA of 40.87, and above the 200-day MA of 31.19, indicating a neutral trend. The MACD of 2.91 indicates Positive momentum. The RSI at 53.69 is Neutral, neither overbought nor oversold. The STOCH value of 31.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:6869.

Yangtze Optical Fibre and Cable Joint Stock Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
HK$71.48B60.024.79%0.54%14.38%-41.96%
65
Neutral
HK$187.02M2.867.40%-9.34%605.26%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
54
Neutral
HK$352.00M-463.16-0.09%-23.93%-109.41%
48
Neutral
HK$771.36M-7.15-24.22%-20.95%-13.14%
46
Neutral
HK$231.55M-3.03-30.44%-58.81%-10.51%
44
Neutral
HK$125.98M-0.96-29.56%-12.03%-40.38%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6869
Yangtze Optical Fibre and Cable Joint Stock Co
49.24
37.51
319.92%
HK:1202
Chengdu Putian Telecommunications Cable Co., Ltd. Class H
0.88
0.18
25.71%
HK:0947
Mobi Development Co., Ltd.
0.16
0.02
13.67%
HK:9963
Transtech Optelecom Science Holdings Limited
2.58
2.22
616.67%
HK:1613
Synertone Communication Corporation
0.17
-0.18
-51.55%
HK:1617
Nanfang Communication Holdings Ltd.
0.12
0.03
33.72%

Yangtze Optical Fibre and Cable Joint Stock Co Corporate Events

Yangtze Optical Fibre Successfully Places New H Shares to Fund Global Expansion
Dec 17, 2025

Yangtze Optical Fibre and Cable Joint Stock Co. has successfully completed the placement of 70 million new H shares, raising approximately HK$2.23 billion in net proceeds. The company plans to allocate 80% of the funds to developing its overseas business through capacity enhancement and market expansion, while the remaining 20% will be directed towards general working capital, including loan repayments, supplier payments, and employee compensation.

The most recent analyst rating on (HK:6869) stock is a Hold with a HK$45.00 price target. To see the full list of analyst forecasts on Yangtze Optical Fibre and Cable Joint Stock Co stock, see the HK:6869 Stock Forecast page.

Yangtze Optical Fibre Announces New H Share Placement
Dec 9, 2025

Yangtze Optical Fibre and Cable Joint Stock Co announced the placing of new H shares under a general mandate, with the agreement made on December 9, 2025. The company plans to issue 70 million placing shares at HK$32.26 each, representing a significant portion of the company’s total issued share capital. The expected gross proceeds from this placing are approximately HK$2,258.20 million, with net proceeds intended for specific uses outlined by the company. The placing price reflects a discount to recent trading prices, and the placing is subject to certain conditions and approvals.

The most recent analyst rating on (HK:6869) stock is a Hold with a HK$38.00 price target. To see the full list of analyst forecasts on Yangtze Optical Fibre and Cable Joint Stock Co stock, see the HK:6869 Stock Forecast page.

Yangtze Optical Fibre and Cable Co’s EGM Approves Key Resolutions
Dec 5, 2025

Yangtze Optical Fibre and Cable Joint Stock Co held its second extraordinary general meeting (EGM) on December 5, 2025, where shareholders voted on several key resolutions. The meeting involved both online and on-site voting, with a significant focus on renewing continuing connected transactions with China Huaxin Group and Nokia Shanghai Group. The resolutions were largely approved, indicating strong shareholder support for the company’s strategic partnerships and operational plans. This outcome is expected to bolster the company’s market position and enhance its operational capabilities, benefiting stakeholders by ensuring continued collaboration with major industry players.

The most recent analyst rating on (HK:6869) stock is a Hold with a HK$38.00 price target. To see the full list of analyst forecasts on Yangtze Optical Fibre and Cable Joint Stock Co stock, see the HK:6869 Stock Forecast page.

Yangtze Optical Fibre Announces Board Composition and Leadership Roles
Dec 5, 2025

Yangtze Optical Fibre and Cable Joint Stock Limited Company has announced the composition of its board of directors and board committees. The announcement details the roles and functions of the executive, non-executive, and independent non-executive directors, as well as the members of the audit, nomination and remuneration, and strategy committees. This organizational update is significant for stakeholders as it highlights the leadership structure that will guide the company’s strategic decisions and governance.

The most recent analyst rating on (HK:6869) stock is a Hold with a HK$38.00 price target. To see the full list of analyst forecasts on Yangtze Optical Fibre and Cable Joint Stock Co stock, see the HK:6869 Stock Forecast page.

Yangtze Optical Fibre Announces Key Resolutions for 2025 EGM
Nov 18, 2025

Yangtze Optical Fibre and Cable Joint Stock Co has announced its 2025 second extraordinary general meeting to discuss several key resolutions. These include the renewal of continuing connected transactions with China Huaxin Group and Nokia Shanghai Group, estimates for 2026 related party transactions, and the appointment of new non-executive directors. Additionally, the company plans to abolish its supervisory board and amend its articles of association and procedural rules, which could impact its governance structure and operational efficiency.

The most recent analyst rating on (HK:6869) stock is a Hold with a HK$40.00 price target. To see the full list of analyst forecasts on Yangtze Optical Fibre and Cable Joint Stock Co stock, see the HK:6869 Stock Forecast page.

Yangtze Optical Fibre Announces Governance Restructuring
Nov 17, 2025

Yangtze Optical Fibre and Cable Joint Stock Co announced several proposed amendments to its corporate governance structure, including changes to the Articles of Association and procedural rules for general meetings and the board of directors. Notably, the company plans to abolish its board of supervisors, with the audit committee assuming its responsibilities, reflecting a strategic shift in governance to streamline operations and enhance oversight. These changes could impact the company’s operational efficiency and stakeholder engagement, aligning with regulatory standards and improving corporate governance.

The most recent analyst rating on (HK:6869) stock is a Hold with a HK$40.00 price target. To see the full list of analyst forecasts on Yangtze Optical Fibre and Cable Joint Stock Co stock, see the HK:6869 Stock Forecast page.

Yangtze Optical Fibre and Cable Announces Board Composition
Nov 17, 2025

Yangtze Optical Fibre and Cable Joint Stock Co has announced the composition of its board of directors and the members of its three board committees. This announcement highlights the company’s leadership structure, which includes a mix of executive, non-executive, and independent non-executive directors, reflecting its commitment to robust corporate governance. The update may have implications for the company’s strategic direction and operational oversight, potentially influencing stakeholder confidence and market positioning.

The most recent analyst rating on (HK:6869) stock is a Hold with a HK$40.00 price target. To see the full list of analyst forecasts on Yangtze Optical Fibre and Cable Joint Stock Co stock, see the HK:6869 Stock Forecast page.

Yangtze Optical Fibre Announces Board Composition and Roles
Oct 31, 2025

Yangtze Optical Fibre and Cable Joint Stock Limited Company has announced the composition of its board of directors and the roles within its board committees. This update is significant as it outlines the leadership structure that will guide the company’s strategic direction and governance, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (HK:6869) stock is a Hold with a HK$40.00 price target. To see the full list of analyst forecasts on Yangtze Optical Fibre and Cable Joint Stock Co stock, see the HK:6869 Stock Forecast page.

Yangtze Optical Fibre Renews Key Agreements with China Huaxin and Nokia Shanghai
Oct 30, 2025

Yangtze Optical Fibre and Cable Joint Stock Co has renewed its continuing connected transactions agreements with China Huaxin Group and Nokia Shanghai Group for the year 2026. These agreements, which regulate sales and purchase transactions, are set to take effect from January 1, 2026, and will be subject to proposed annual caps. The transactions are exempt from certain regulatory requirements due to their size but will still require shareholder approval at the company’s general meeting.

The most recent analyst rating on (HK:6869) stock is a Hold with a HK$40.00 price target. To see the full list of analyst forecasts on Yangtze Optical Fibre and Cable Joint Stock Co stock, see the HK:6869 Stock Forecast page.

Yangtze Optical Fibre Announces Board Changes with New Director Nomination
Oct 30, 2025

Yangtze Optical Fibre and Cable Joint Stock Co. announced the resignation of Mr. Xiong Xiangfeng as a non-executive director due to his retirement. His departure is not expected to disrupt the company’s board operations or affect its normal functioning. The company has proposed Mr. Qiu Xiangping as a new non-executive director, pending shareholder approval. Mr. Qiu brings extensive experience from his roles in related industries, which may enhance the company’s strategic direction and governance.

The most recent analyst rating on (HK:6869) stock is a Hold with a HK$40.00 price target. To see the full list of analyst forecasts on Yangtze Optical Fibre and Cable Joint Stock Co stock, see the HK:6869 Stock Forecast page.

Yangtze Optical Fibre Reports Mixed Financial Results in Q3 2025
Oct 30, 2025

Yangtze Optical Fibre and Cable Joint Stock Co released its unaudited 2025 Third Quarterly Report, showing a significant increase in operating income and profit before tax compared to the previous year. However, the net profit attributable to equity shareholders decreased, highlighting challenges despite revenue growth. The report indicates a strong cash flow from operating activities, suggesting robust operational efficiency. The financial results reflect the company’s strategic positioning in the market, with implications for stakeholders regarding its profitability and growth trajectory.

The most recent analyst rating on (HK:6869) stock is a Hold with a HK$40.00 price target. To see the full list of analyst forecasts on Yangtze Optical Fibre and Cable Joint Stock Co stock, see the HK:6869 Stock Forecast page.

Yangtze Optical Fibre and Cable Approves Share Issuance Mandate at EGM
Oct 27, 2025

Yangtze Optical Fibre and Cable Joint Stock Limited Company held its first extraordinary general meeting of 2025 on October 27, where shareholders approved a special resolution granting the board a general mandate to issue shares. The resolution passed with a significant majority, reflecting strong shareholder support and potentially impacting the company’s capital structure and market strategy.

The most recent analyst rating on (HK:6869) stock is a Hold with a HK$40.00 price target. To see the full list of analyst forecasts on Yangtze Optical Fibre and Cable Joint Stock Co stock, see the HK:6869 Stock Forecast page.

Yangtze Optical Fibre Schedules Board Meeting for Financial Review
Oct 17, 2025

Yangtze Optical Fibre and Cable Joint Stock Limited Company has announced a board meeting scheduled for October 30, 2025, to review and approve the unaudited financial results for the nine months ending September 30, 2025. This meeting is significant as it will provide insights into the company’s financial health and operational performance, potentially impacting its market position and stakeholder confidence.

The most recent analyst rating on (HK:6869) stock is a Hold with a HK$50.00 price target. To see the full list of analyst forecasts on Yangtze Optical Fibre and Cable Joint Stock Co stock, see the HK:6869 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 20, 2025