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<Research> UBS: YOFC (06869.HK) Quarterly Results Miss Expectations but Positive on Earnings Growth in Coming Quarters
Recommend 25 Positive 34 Negative 36 |
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UBS published a research report stating that YOFC (06869.HK) reported 1Q results that missed market expectations. Revenue for the period was RMB3.7 billion, up 28% YoY. Gross profit reached RMB1.5 billion, up 90% YoY, while net profit amounted to RMB495 million, up 226% YoY. The bank expects gross margin to continue improving in the coming quarters, supported by ongoing optimization of the product mix and gradual reflection of rising optical fiber prices in contract renewals. UBS noted that YOFC's 1Q net profit of RMB495 million was below the market buy-side expectation of RMB800 million to RMB1 billion, and anticipated a negative short-term market reaction. Nevertheless, the bank remains confident in the company's earnings growth over the coming quarters, believing that the increase in optical fiber prices will take time to be fully reflected and that demand from data centers will continue to rise. It expects the company to meet its full-year forecast. The bank maintained its earnings forecast and TP at HKD290, and reiterated its Buy rating. YOFC opened 5.1% lower this morning and once fell as much as 15% intraday to a trough of HKD196.1. It was last reported at HKD200.2, down 13.3%, with turnover of HKD6.969 billion. (hc/w) Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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