The Zhitong Finance App learned that Hongteng Precision (06088) has increased by nearly 4%, and the cumulative increase since the beginning of February has exceeded 160%. As of press release, it rose 3.39% to HK$2.44, with a turnover of HK$63.7871 million.
According to media reports, Hon Hai announced on April 3 that it would spend 120 million US dollars to expand its investment in Mexico. Outsiders speculate that Hon Hai's move will expand AI server production capacity, expand cooperation with Nvidia on all aspects of AI chip modules, substrates, servers and cabinets, and ship them to CSPs such as Amazon AWS, Microsoft, and Google in North America.
CMB International previously released a research report saying that the latest generation Nvidia GB200 NVL72 cabinet design includes more than 5,000 copper cables to achieve better cost and power savings. The bank believes that server copper cable connection products will become one of the future growth drivers for Hongteng Precision. The bank is optimistic that Hongteng Precision will achieve revenue growth and continued profit margin expansion in 2024, raising its target price from HK$2.02 to HK$2.21.