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

• Market Cap: $47.29B
• Dividend Yield: 0.66%
• Average Volume (3M): 33.52M
• Price to Earnings (P/E): 42.7
• Beta (1Y): 0.95
• Revenue Growth: 0.24%
• EPS Growth: -31.74%
• Country: HK
• Employees: 4,358
• Sector: Technology
• Sector Strength: 85
• Industry: Communication Equipment
• EPS (TTM): 0.22
• Shares Outstanding: 351,566,770
• 10 Day Avg. Volume: 32,824,464
• 30 Day Avg. Volume: 33,516,197
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.48
• Enterprise Value/Revenue: 1.86
• Enterprise Value/Gross Profit: 6.71
• Enterprise Value/Ebitda: 12.23
• 1Y Price Target: $20.17
• Price Target Upside: -54.82% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 70 Outperform
• Price Target: HK$28.00 ▼(-37.28% Downside)

The stock receives a score of 70, driven by strong technical momentum, despite financial performance challenges and high valuation. The lack of earnings call data and corporate events does not affect this assessment.

Positive Factors

Earnings Performance

Core earnings increased by 70% thanks to gross margin expansion.

Revenue Growth

Revenue grew 21% supported by rising demand for AI and data centre.

Negative Factors

Market Challenges

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.

Pricing Pressure

Irrational price competition due to sluggish product demand will lead to significant pricing pressure.

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

Company Description

Yangtze Optical Fibre and Cable Joint Stock Co (6869) is a leading manufacturer and supplier in the global optical fiber and cable industry. The company specializes in the research, development, and production of a wide range of optical communication products, including optical fiber preforms, optical fibers, and optical cables. It serves various sectors such as telecommunications, data communication, and broadband networks, providing high-quality solutions to meet the growing demand for bandwidth and data transmission.

How the Company Makes Money

Yangtze 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.20B	13.35B	13.83B	9.54B	8.22B
Gross Profit	3.33B	3.27B	3.24B	1.87B	1.79B
EBITDA	1.84B	2.30B	1.95B	1.00B	1.01B
Net Income	675.88M	1.30B	1.17B	708.51M	543.68M
Balance Sheet
Total Assets	31.73B	29.14B	28.20B	19.48B	15.86B
Cash, Cash Equivalents and Short-Term Investments	4.73B	4.94B	5.67B	4.30B	2.34B
Total Debt	6.90B	8.50B	6.80B	4.55B	2.80B
Total Liabilities	16.15B	14.74B	13.67B	8.89B	6.47B
Stockholders Equity	11.63B	11.31B	10.14B	9.78B	9.05B
Cash Flow
Free Cash Flow	397.55M	-748.28M	-633.67M	-546.85M	-468.25M
Operating Cash Flow	1.78B	1.51B	1.59B	526.74M	140.87M
Investing Cash Flow	-2.30B	-2.61B	-2.19B	-1.39B	-1.55B
Financing Cash Flow	-25.29M	643.40M	1.98B	2.29B	719.48M

Yangtze Optical Fibre and Cable Joint Stock Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 44.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 44.64 is above the 20-day moving average (MA) of 35.63, above the 50-day MA of 26.29, and above the 200-day MA of 17.60, indicating a bullish trend. The MACD of 5.32 indicates Negative momentum. The RSI at 68.61 is Neutral, neither overbought nor oversold. The STOCH value of 80.78 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
6869	70 Outperform	$47.29B	42.68	6.68%	0.66%	0.24%	-31.74%
Sector *	61 Neutral	$35.62B	8.22	-10.94%	1.88%	8.86%	-10.36%
CUEH	―	€43.30M	242.50	0.15%	―	―	―
1617	59 Neutral	HK$260.20M	6.02	5.02%	―	1.01%	660.00%
9963	46 Neutral	HK$91.00M	―	-23.56%	―	-15.03%	-47.69%
0947	41 Neutral	HK$121.20M	―	-29.56%	―	-12.03%	-40.38%
1613	41 Neutral	HK$116.67M	―	-29.38%	―	86.85%	-36.65%

Yangtze Optical Fibre and Cable Joint Stock Co Corporate Events

Yangtze Optical Completes Share Transfer for Employee Ownership Plan

Yangtze Optical Fibre and Cable Joint Stock Co has completed the transfer of 6 million A Shares to its 2025 Employee Share Ownership Plan (ESOP), representing 0.79% of its total share capital. The company has also held its first holders’ meeting for the ESOP, establishing a management committee to oversee the plan. Additionally, a supervisor of the company, Mr. Xiong Zhuang, has subscribed to 67,535 A Shares under the ESOP, which accounts for 1.1256% of the shares held under the plan. This move is part of the company’s strategy to align employee interests with corporate performance, potentially impacting its market positioning and stakeholder engagement.

Yangtze Optical Fibre and Cable Co Strengthens Governance with Key AGM Resolutions

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.

Yangtze Optical Fibre Updates Final Dividend Details for 2024

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.

Yangtze Optical Fibre Announces Board Composition and Roles

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.

Yangtze Optical Fibre Announces Final Dividend Update for 2024

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.

Yangtze Optical Fibre and Cable Announces 2025 AGM and Key Resolutions

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.