YOFC New Procurement Tender Released

YOFC's 1Q26 results showed a revenue miss but a significant margin beat, leading Goldman Sachs to maintain a Neutral rating while raising the target price to HK$290.

Key Takeaways

• 1.1Q26 revenue grew 28% YoY to Rmb3.7bn, missing estimates by 8% due to capacity expansion lags, but gross margins outperformed at 41.5%.
• 2.New provincial procurement tenders in China suggest a fiber price upcycle with higher ASP ceilings.
• 3.Earnings estimates for 2026-28E have been revised upward by 3-6% based on better product mix (AI data centers) and pricing.

Table of Contents

• YOFC 1Q26 result snapshot
• Provincial procurement tender released
• Earnings revision
• Valuation
• Price Target Risks and Methodology - YOFC
• Disclosure Appendix

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