Shares of YOFC (06869) rose more than 3%, climbing 3.33% to HK$3.70 as of press time, with turnover reaching HK$430 million.

On the news front, DBS released a research report raising its rating on YOFC from "fully valued" to "buy," with a target price of HK$259, based on a forecast price-to-earnings ratio of 20 times for fiscal year 2027, one standard deviation above the historical average, reflecting improved profit visibility, rising exposure to artificial intelligence data center demand, and domestic telecom carrier price resets.

The brokerage forecasts YOFC's shipment volumes to grow 34%, 19%, and 9% for fiscal years 2026 to 2028, respectively, with the group's gross profit margin expanding to 48% in fiscal year 2026; revenue to grow 63%, 44%, and 20%, respectively, and raised its profit forecasts to 6.068 billion yuan, 9.313 billion yuan, and 11.199 billion yuan, respectively.