UBS noted that China's optical fiber sector has corrected 37% from its June high, but investors' concerns about overcapacity and peak earnings in 2027 are significantly overestimated. The bank believes that the demand engine for the optical fiber industry has shifted from the capital expenditures of China's three major operators to global data center construction, directly linked to AI infrastructure. Furthermore, supply-side expansion is constrained by bottlenecks such as extended equipment delivery times and talent shortages, meaning actual implementation will be later than market expectations. Against this backdrop, UBS raised its target price for Yangtze Optical Fibre and Cable (YOFC) H-shares from HKD 290 to HKD 330, representing a 73% upside from the current price of HKD 190.5. It maintained a "neutral" rating for YOFC A-shares, raising the target price from RMB 310 to RMB 510.