The Zhitong Finance App learned that Hongteng Precision (06088) has increased by nearly 7%, rising 1.5 times since the beginning of February. As of press release, it rose 5.02% to HK$2.3, with a turnover of HK$306.319 million.
According to media reports, on April 3, Hon Hai issued an announcement stating that the company will spend 120 million US dollars to expand its investment in Mexico. Outsiders believe that Hon Hai has received a large order for artificial intelligence servers from Nvidia and an American cloud service provider, and is expected to be manufactured in Mexico in the future to meet the needs of the North American AI server market.
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.