Market Insight | FIT HON TENG Precision surges over 5% again, up 1.5 times year-to-date, company expected to benefit from high demand for Apple's phone upgrades and AI servers
FIT HON TENG's stock price has risen by over 5%, with a year-to-date increase of more than 1.5 times. Apple announced its AI strategy, expecting product updates in the third quarter of this year, leading to replacement demand. Supply chain companies like FIT HON TENG will benefit from this. In addition, the major electronic manufacturing giant, Foxconn, is expected to mass-produce servers with NVIDIA's GB200 in September 2024. FIT HON TENG is one of the leading global server connector manufacturers, with server/interconnect business revenue expected to grow by 15-20% year-on-year in 2024, and AI server-related product revenue to account for 8-10% of the total revenue
According to the Vantage News APP, FIT HON TENG (06088) has risen by over 5% again, with a year-to-date cumulative increase of more than 1.5 times. As of the time of publication, it has risen by 5.28% to HKD 2.99, with a turnover of HKD 75.8501 million.
On the news front, Apple has announced its AI strategy. CMB International believes that Apple's AI feature updates released at WWDC this time basically meet the market's previous expectations. Considering that only products such as the iPhone 15 Pro series and devices using the M1 or newer chips can use Apple Intelligence, the bank expects a product update replacement demand in the third quarter of this year, benefiting related supply chain companies including FIT HON TENG.
In addition, the electronic manufacturing giant Foxconn previously stated that servers equipped with NVIDIA's GB200 are expected to start mass production in September 2024. It is reported that the GB200 is the first to adopt a high-speed copper cable solution, with the current value of a single NVL72 copper cable at about 500,000. CMB International pointed out that FIT HON TENG is one of the leading global server connector manufacturers, and the management expects that the server/interconnect business revenue in 2024 will increase by 15-20% year-on-year, with AI server-related product revenue accounting for 8-10% of the total revenue, a significant increase compared to 1% in 2023