HK Stock Market Move | FIT HON TENG (06088) rose more than 6% during trading. Wong Yam Hun believes in the value of copper connection cost. The company's server/interconnection business revenue is expected to increase significantly.

FIT HON TENG (06088) rose more than 6% during trading hours, with a 3.71% increase as of the time of writing, reaching HK$3.63, with a trading volume of HK$87.3414 million. On the news front, Huang Renxun recently announced in a speech that Nvidia will continue to adopt copper cable interconnect solutions and will continue to use copper cables in the future. Huang Renxun pointed out that high-speed copper cables are expected to expand their application in data centers, as they offer cost advantages. Market concerns about the shift from optical to copper cables previously existed. Huaxin Securities stated that copper and optical integration is an industry trend under the simultaneous upgrade of Scale Up and Scale Out. Zhong Yin International pointed out that FIT HON TENG is one of the leading global server connector manufacturers, and the management expects a three-year 20% CAGR revenue growth target for FY25-27E. In 2024, server/interconnection business revenue is expected to grow by 15-20% year-on-year, with AI server-related product revenue accounting for 8-10% of revenue, mainly driven by the growth in shipments of copper connector products, as well as rapid mass production of MCIO and high-speed I/O products. In addition, the company is experiencing new product launches and business breakthroughs: the shipment volume of high-speed connector products in the network connection business will significantly increase, benefiting from the mass production of GB200 servers; Voltaira's automotive electronics business is expected to bring triple-digit year-on-year growth; and Airpods' India production capacity will start shipping this year, with an expected continuous increase in market share.