Hongteng Precision (06088) fell by more than 5%, falling nearly 20% over the past three days. As of press release, it decreased by 2.86% to HK$2.04, with a turnover of HK$10.2497 million.
The Zhitong Finance App learned that Hongteng Precision (06088) fell by more than 5%, falling nearly 20% over the past three days. As of press release, it decreased by 2.86% to HK$2.04, with a turnover of HK$10.2497 million.
CMB International released a research report stating that a conference call was held with the management of Hongteng Precision. The bank believes that recent stock prices have been weak, partly because investors are concerned about the increase and distribution of Apple's TWS orders. Management said that the first AirPods production line began shipping in Vietnam in the first quarter of '24 and is expected to account for 5-7% of FY24E's sales. By 2025, its Indian plant will add six more production lines.
The bank believes that recent stock price adjustments have been excessive, and that Hongteng Precision maintains an optimistic view of the growth drivers (AirPods, AI server connectors, automotive business) in 2024. Maintain a “buy” with a target price of HK$2.42. Upcoming catalysts include the Q24 update in late April, the launch of AirPods, and the launch of artificial intelligence server products.