Hongteng Precision (06088) rose more than 8% in early trading. As of press release, it had risen 8% to HK$2.16, with a turnover of HK$36.4892 million.
The Zhitong Finance App learned that Hongteng Precision (06088) rose more than 8% in early trading. As of press release, it had risen 8% to HK$2.16, with a turnover of HK$36.4892 million.
Guotai Junan pointed out that Nvidia GB200 NVL72 uses 224 Gbps copper cables for both internal and external cables. Since high-frequency signals will experience more attenuation and distortion during transmission, the difficulty of cable manufacturing has increased significantly. For manufacturers, it is also necessary to invest in expensive manufacturing and testing equipment. Currently, leading companies such as Amphenol, Morse, and Lixun Precision all have layouts. With the release of the Nvidia GB200 series, it will drive the rapid growth of the copper interconnect market, and the supply chain will benefit deeply.
CMB International previously released a research report. Hongteng Precision's management indicated that FY24 server/interconnection business revenue will increase by 15-20% year-on-year, and this segment of the business has a high gross profit margin of 30-40%. Furthermore, revenue from AI server-related connectivity products will account for 8-10% of the company's total revenue, a significant increase compared to 1% of FY23. It is mainly driven by increased shipments of copper connector products, as well as the rapid release of MCIO and high-speed I/O products. The bank believes that copper cable connection products for servers will become one of Hongteng Precision's future growth drivers.