Yangtze Optical Fibre and Cable Joint Stock Limited Company’s (YOFC) 2020 results were lower than our expectations, given weaker-than-expected profitability. Management noted a recovery in the industry from a supply/demand perspective. We believe that the industry reached bottom in 4Q20 and 1Q21 and will recover in the coming quarters. We share the view that it will take time for investors to review the industry and the Company. Catalysts are rising industry ASPs and tenders by telecom operators. We raise our target price from HK$10.22 to HK$11.88, based on 12x 2021F P/E (target P/E multiple remain unchanged.) We also upgrade our rating from REDUCE to ADD.