Yamato: First Changfei Optical Fiber Cable (06869) “Buy” Rating Target Price HK$152

The Zhitong Finance App learned that Yamato released a research report saying that it covered Changfei Optical Fiber Cable (06869) for the first time, giving a “buy” rating and a target price of HK$152, which is equivalent to predicting next year's price-earnings ratio 10 times.

Yamato said that Changfei Optical Fiber is benefiting from the current strong upward cycle of the optical fiber industry. The company is expected to be supported by technology leadership and upward space in the optical interconnection business. Among them, the compound annual gross profit growth rate of the optical interconnect business is predicted to be 137%, driving the net profit compound annual growth rate of 135% from 2025 to 28.

In terms of overseas business, Yamato believes that Changfei Optical's global layout and close relationships with international customers are key advantages in capturing overseas AI infrastructure needs. The bank predicts that the company's overseas gross profit will grow at a compound annual rate of 109% from 2026 to 28, and that gross margins will be 53%, 56% and 48% respectively from 2026 to 28.