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

Rating:70Outperform
Price Target:
HK$28.00
▲(11.11%Upside)
Yangtze Optical Fibre and Cable Joint Stock Co's overall stock score is driven by strong technical momentum, despite financial performance challenges related to profitability and cash flow. Valuation concerns, due to a high P/E ratio, also weigh on the score.
Positive Factors
Earnings Performance
Core earnings increased by 70% y/y thanks to gross margin expansion.
Market Position
YOFC is one of the largest optical fibre cable makers in China with a vertically integrated business model that allows the company to command a higher profit margin than competitors.
Revenue Growth
Revenue grew 21% y/y supported by rising demand for AI and data centre.
Negative Factors
Market Demand
The traditional fibre and cable market is facing challenges due to lower demand in both domestic and international markets as a result of weaker network spending by telecom carriers.
Price Competition
Irrational price competition due to sluggish product demand will lead to challenges.
Profitability Pressure
Price competition due to sluggish product demand will lead to significant deterioration in profitability.

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 Limited Company researchs, develops, produces, and sells optical fiber and cable products in the People's Republic of China and internationally. The company operates in two segments, Optical Fibres and Optical Fibre Preforms, and Optical Fibre Cables segments. It also provides copper wire and related products; integrated wiring systems; technical development consulting services for computer hardware and software and ancillary equipment; and vapor and chemical raw materials. In addition, the company imports, exports, and sells submarine cables, optical cables, and other power cables and their accessories, as well as trades in raw materials; and installs cables, accessories, and systems related to various submarine projects. Further, it designs, produces, and sells optical communication equipment and electrical products, as well as provides integrated services in communication, computer, intelligent building, weak current system, and software development. Additionally, the company engages in research and promotion of medical materials, as well as provides general contracting engineering services. Yangtze Optical Fibre And Cable Joint Stock Limited Company was founded in 1988 and is headquartered in Wuhan, the People's Republic of China.
How the Company Makes MoneyYangtze Optical Fibre and Cable Joint Stock Co generates revenue primarily through the sale of its optical fiber and cable products. The company's key revenue streams include the production and distribution of optical fiber preforms, optical fibers, and optical cables to telecommunications companies, internet service providers, and other enterprises requiring advanced data transmission solutions. Additionally, the company leverages strategic partnerships and collaborations to enhance its market presence and expand its customer base. Factors such as technological innovation, economies of scale, and a strong distribution network contribute significantly to its earnings.

Yangtze Optical Fibre and Cable Joint Stock Co Financial Statement Overview

Summary
Yangtze Optical Fibre and Cable Joint Stock Co shows a mixed financial performance with stable revenue but declining profitability indicators. The balance sheet is relatively stable, but leverage is a concern. Cash flow struggles highlight the need for improved cash management and operational efficiency. The company should focus on enhancing profitability and managing debt levels to strengthen its financial position.
Income Statement
70
Positive
The income statement reflects a mixed performance with both strengths and weaknesses. The company has experienced fluctuating revenue growth with a decline in the most recent year. The gross profit margin is stable, but the net profit margin has decreased, indicating potential cost pressures or inefficiencies. Despite this, the company maintains a positive EBIT margin, showcasing its operational efficiency.
Balance Sheet
65
Positive
The balance sheet demonstrates a stable equity base, but the debt-to-equity ratio indicates moderate leverage, suggesting some financial risk. The return on equity has decreased, reflecting reduced profitability. Nonetheless, the equity ratio remains strong, contributing to financial stability.
Cash Flow
60
Neutral
Cash flow analysis indicates challenges in free cash flow generation, with recent negative free cash flow figures. Operating cash flow has been positive, but the ratio of operating cash flow to net income suggests room for improvement in cash conversion efficiency. Investment in capital expenditures appears to be substantial, impacting free cash flow.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue12.20B13.35B13.83B9.54B8.22B
Gross Profit3.33B3.27B3.24B1.87B1.79B
EBITDA1.84B2.30B1.95B1.00B1.01B
Net Income675.88M1.30B1.17B708.51M543.68M
Balance Sheet
Total Assets31.73B29.14B28.20B19.48B15.86B
Cash, Cash Equivalents and Short-Term Investments4.73B4.94B5.67B4.30B2.34B
Total Debt6.90B8.50B6.80B4.55B2.80B
Total Liabilities16.15B14.74B13.67B8.89B6.47B
Stockholders Equity11.63B11.31B10.14B9.78B9.05B
Cash Flow
Free Cash Flow397.55M-748.28M-633.67M-546.85M-468.25M
Operating Cash Flow1.78B1.51B1.59B526.74M140.87M
Investing Cash Flow-2.30B-2.61B-2.19B-1.39B-1.55B
Financing Cash Flow-25.29M643.40M1.98B2.29B719.48M

Yangtze Optical Fibre and Cable Joint Stock Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price25.20
Price Trends
50DMA
18.36
Positive
100DMA
17.01
Positive
200DMA
15.07
Positive
Market Momentum
MACD
1.13
Negative
RSI
68.26
Neutral
STOCH
49.58
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 25.2 is above the 20-day moving average (MA) of 20.81, above the 50-day MA of 18.36, and above the 200-day MA of 15.07, indicating a bullish trend. The MACD of 1.13 indicates Negative momentum. The RSI at 68.26 is Neutral, neither overbought nor oversold. The STOCH value of 49.58 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 (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$27.39B20.206.68%1.33%0.24%-31.74%
62
Neutral
$34.85B5.63-12.19%2.01%5.91%-17.91%
€41.42M212.500.15%
59
Neutral
HK$196.78M4.515.02%1.01%660.00%
46
Neutral
HK$104.00M-23.56%-15.03%-47.69%
46
Neutral
HK$114.43M-29.38%108.35%58.07%
40
Neutral
HK$91.27M-27.13%-21.31%-105.30%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6869
Yangtze Optical Fibre and Cable Joint Stock Co
25.20
17.35
220.86%
DE:CUEH
Chengdu Putian Telecommunications Cable Co., Ltd. Class H
0.09
0.03
50.00%
HK:0947
Mobi Development Co., Ltd.
0.11
-0.03
-21.43%
HK:9963
Transtech Optelecom Science Holdings Limited
0.40
0.16
66.67%
HK:1613
Synertone Communication Corporation
0.24
-0.15
-38.46%
HK:1617
Nanfang Communication Holdings Ltd.
0.12
0.04
50.00%

Yangtze Optical Fibre and Cable Joint Stock Co Corporate Events

Yangtze Optical Fibre and Cable Co Strengthens Governance with Key AGM Resolutions
Jun 30, 2025

Yangtze Optical Fibre and Cable Joint Stock Co held its Annual General Meeting (AGM) on June 30, 2025, where shareholders approved several key resolutions, including the 2024 annual report, financial report, and profit distribution plan. The meeting also confirmed the re-appointment of KPMG Huazhen LLP as the company’s independent auditors for 2025 and appointed a new non-executive director. These decisions are expected to strengthen the company’s governance and financial transparency, positively impacting its market position and stakeholder confidence.

The most recent analyst rating on (HK:6869) stock is a Hold with a HK$13.50 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 Updates Final Dividend Details for 2024
Jun 30, 2025

Yangtze Optical Fibre and Cable Joint Stock Co announced an update to its final cash dividend for the year ended December 31, 2024. The dividend is set at RMB 0.268 per share, with a payment date of August 15, 2025. The update includes details on the default currency, exchange rate, and withholding tax rates applicable to different types of shareholders. This announcement reflects the company’s commitment to shareholder returns and provides clarity on the financial distribution process, potentially impacting investor relations and market perception.

The most recent analyst rating on (HK:6869) stock is a Hold with a HK$13.50 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
Jun 30, 2025

Yangtze Optical Fibre and Cable Joint Stock Limited Company announced the composition of its Board of Directors and Board committees, highlighting the roles and functions of each member. This announcement provides clarity on the company’s governance structure, potentially impacting its strategic direction and stakeholder confidence.

The most recent analyst rating on (HK:6869) stock is a Hold with a HK$13.50 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 Final Dividend Update for 2024
Jun 3, 2025

Yangtze Optical Fibre and Cable Joint Stock Co has announced an update regarding its final cash dividend for the year ended December 31, 2024, declaring a dividend of RMB 0.268 per share. The announcement includes key dates for shareholders, such as the ex-dividend date on July 3, 2025, and the payment date on August 15, 2025. The company has also detailed the withholding tax rates applicable to different types of shareholders, which may impact the net dividend received by non-resident enterprises and individual mainland investors. This update reflects the company’s commitment to returning value to its shareholders while navigating tax implications.

The most recent analyst rating on (HK:6869) stock is a Hold with a HK$13.50 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 2025 AGM and Key Resolutions
Jun 3, 2025

Yangtze Optical Fibre and Cable Joint Stock Limited Company has announced its upcoming annual general meeting scheduled for June 30, 2025, in Wuhan, Hubei Province, PRC. The meeting will address several resolutions, including the approval of the 2024 financial reports, profit distribution plan, re-appointment of auditors, and the adoption of a 2025 employee share ownership plan. These resolutions are aimed at strengthening the company’s financial management and enhancing stakeholder value.

The most recent analyst rating on (HK:6869) stock is a Hold with a HK$13.50 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: Jul 31, 2025