DBS: Yangtze Optical Fibre and Cable – Hold Target Price HK$8.30

Company Update: Awaiting demand recovery for core optical business

• Expect revenue to drop by 4% in FY23, due to weaker demand for optical cable products
• Weak cable demand to sustainbe maintained in FY24; expect cable revenue to decline another rease by 4% in FY24
• Forecast earnings drop of 4% in FY23, before mild recovery of and growth of 2% and 5% in FY24 and FY25, respectively
• Maintain HOLD on muted near-term demand outlook for its core optical cable business; TP of HK$8.3