HK Stock Market Move | FIT HON TENG (06088) rose by over 10% in intraday trading, driven by strong demand for AI driving rapid growth in network infrastructure revenue.

FIT HON TENG (06088) rose more than 10% during trading, rising 4.98% to HK$3.16 by the time of publication, with a turnover of HK$155 million. On the news front, FIT HON TENG recently released its performance for the nine months ending September 30, 2024, with revenue and other operating income of US$3.241 billion, an increase of 9.91% year-on-year; net profit from continuing operations of US$101 million, an increase of 117.79% year-on-year. For the third quarter alone, net profit from continuing operations was US$68.05 million, an increase of 23.86% year-on-year; revenue and other operating income were US$1.174 billion, an increase of 0.83% year-on-year. EB SECURITIES pointed out that strong demand for AI is driving high-speed growth in network infrastructure revenue, with mainboard connectors and cable sales increasing threefold. The company expects network infrastructure business revenue in Q4 2024 to maintain high double-digit growth, with full-year revenue growth expected to exceed 30%. ZhongYuan International also noted that recent stock price drivers for FIT HON TENG include: GB200 AI server new model verification progress, the construction of AirPods production lines in India, and progress in the acquisition and consolidation of Auto-Kabel company.