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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

(6869)

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Neutral 55 (OpenAI - 4o)
Rating:55Neutral
Price Target:
HK$40.00
▲(17.92% Upside)
Yangtze Optical Fibre and Cable Joint Stock Co's overall stock score is primarily influenced by its solid financial performance, despite concerns over rising leverage and cash flow conversion. The technical analysis indicates bearish momentum, and the valuation suggests the stock is overvalued. These factors collectively result in a moderate overall score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term competitiveness and market position.
Cash Flow Generation
Strong free cash flow growth enhances financial flexibility, allowing for reinvestment in growth opportunities and reducing reliance on external financing.
Profitability Margins
Healthy profitability margins reflect efficient cost management and pricing power, contributing to sustainable long-term earnings and shareholder value.
Negative Factors
Rising Leverage
Rising leverage can increase financial risk and interest obligations, potentially impacting the company's ability to invest in growth and maintain financial stability.
Earnings to Free Cash Flow Conversion
Low conversion of earnings to free cash flow may limit the company's ability to fund new projects and return capital to shareholders, affecting long-term growth.
Operational Efficiency
Suboptimal operational efficiency can hinder profitability and competitiveness, necessitating strategic improvements to enhance cost management and productivity.

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 shows solid financial performance with consistent revenue growth and healthy profitability margins. The balance sheet is stable, though rising leverage is a concern. Cash flow generation has improved, but earnings conversion to free cash flow needs attention.
Income Statement
75
Positive
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
70
Positive
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
68
Positive
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 Revenue13.23B12.20B13.35B13.83B9.54B8.22B
Gross Profit3.62B3.33B3.27B3.24B1.87B1.65B
EBITDA2.03B1.84B2.30B1.95B741.30M1.01B
Net Income593.87M675.88M1.30B1.17B708.51M543.68M
Balance Sheet
Total Assets31.83B31.73B29.14B28.20B19.48B15.86B
Cash, Cash Equivalents and Short-Term Investments4.26B4.73B4.94B5.67B4.30B2.34B
Total Debt9.59B6.90B8.50B6.48B4.55B2.13B
Total Liabilities16.63B16.15B14.74B13.67B8.89B6.47B
Stockholders Equity11.50B11.63B11.31B10.14B9.78B9.05B
Cash Flow
Free Cash Flow1.07B397.55M-748.28M-633.67M-546.85M-468.25M
Operating Cash Flow2.41B1.78B1.51B1.59B526.74M140.87M
Investing Cash Flow-2.28B-2.30B-2.61B-2.19B-1.39B-1.55B
Financing Cash Flow-1.20B-25.29M643.40M1.98B2.29B719.48M

Yangtze Optical Fibre and Cable Joint Stock Co Technical Analysis

Technical Analysis Sentiment
Negative
Last Price33.92
Price Trends
50DMA
46.36
Negative
100DMA
36.04
Negative
200DMA
26.15
Positive
Market Momentum
MACD
-3.22
Positive
RSI
35.94
Neutral
STOCH
9.04
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6869, the sentiment is Negative. The current price of 33.92 is below the 20-day moving average (MA) of 38.71, below the 50-day MA of 46.36, and above the 200-day MA of 26.15, indicating a neutral trend. The MACD of -3.22 indicates Positive momentum. The RSI at 35.94 is Neutral, neither overbought nor oversold. The STOCH value of 9.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
61
Neutral
HK$174.01M2.667.40%-9.34%605.26%
55
Neutral
$48.82B41.144.79%0.87%14.38%-41.96%
52
Neutral
HK$352.00M-0.09%-23.93%-109.41%
49
Neutral
HK$115.70M-1.23-24.22%-20.95%-13.14%
46
Neutral
HK$109.49M-2.96-29.38%86.85%-36.65%
40
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
33.92
22.33
192.72%
HK:1202
Chengdu Putian Telecommunications Cable Co., Ltd. Class H
0.88
0.10
12.82%
HK:0947
Mobi Development Co., Ltd.
0.16
0.00
0.00%
HK:9963
Transtech Optelecom Science Holdings Limited
0.44
0.27
158.82%
HK:1613
Synertone Communication Corporation
0.23
-0.29
-55.77%
HK:1617
Nanfang Communication Holdings Ltd.
0.11
<0.01
10.00%

Yangtze Optical Fibre and Cable Joint Stock Co Corporate Events

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.

Yangtze Optical Fibre and Cable Co Announces 2025 EGM to Approve Share Issuance Mandate
Sep 29, 2025

Yangtze Optical Fibre and Cable Joint Stock Co has announced the convening of its 2025 first extraordinary general meeting (EGM) scheduled for October 27, 2025. The meeting aims to consider and approve a special resolution granting the board of directors a general mandate to issue shares. This decision could potentially impact the company’s operational strategies and market positioning by enabling greater flexibility in capital management and expansion efforts.

The most recent analyst rating on (HK:6869) stock is a Buy with a HK$28.00 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 Revenue Growth Amid Profit Decline
Aug 29, 2025

Yangtze Optical Fibre and Cable Joint Stock Co. reported a significant increase in total revenue by 19.4% to approximately RMB6,384.5 million for the first half of 2025, driven by a 52.8% rise in overseas sales. Despite the revenue growth, the company’s profit attributable to equity shareholders decreased by 21.7% to RMB295.7 million, impacted by various financial and operational expenses. The board did not recommend an interim dividend for the period, reflecting a cautious approach amid fluctuating profits.

The most recent analyst rating on (HK:6869) stock is a Buy with a HK$28.00 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 for H1 2025
Aug 27, 2025

Yangtze Optical Fibre and Cable Joint Stock Co announced its unaudited financial results for the first half of 2025, reporting a significant increase in total operating income by 19.37% to 6,384 million RMB. Despite this growth, the net profit attributable to shareholders decreased by 21.69% to 296 million RMB, indicating challenges in maintaining profitability. The results reflect a mixed performance, with a notable rise in operating profit by 92.02%, but a decline in net profit and earnings per share, suggesting potential impacts on stakeholder confidence and market positioning.

The most recent analyst rating on (HK:6869) stock is a Buy with a HK$28.00 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 to Review Interim Results in Upcoming Board Meeting
Aug 19, 2025

Yangtze Optical Fibre and Cable Joint Stock Limited Company has announced a board meeting scheduled for August 29, 2025, to review and approve the interim results for the first half of 2025. This meeting is significant for stakeholders as it will provide insights into the company’s financial performance and strategic direction for the remainder of the year.

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 Completes Share Transfer for Employee Ownership Plan
Aug 7, 2025

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.

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: Oct 31, 2025