HK Stock Market Move | FIT HON TENG (06088) rose more than 9%, institutions say AI servers are expected to drive valuation reassessment.

FIT HON TENG (06088) surged more than 9%, with a 9.32% increase as of the time of this report, reaching 3.99 Hong Kong dollars, with a trading volume of 1.84 billion Hong Kong dollars. On the news front, FIT HON TENG will disclose its fourth quarter and full-year performance for last year in mid-March. CICC International stated that it expects the company's revenue and net profit last year to be $4.55 billion and $179 million, respectively, representing a year-on-year increase of 9% and 39% respectively. The bank pointed out that it holds a positive view on FIT HON TENG as the company is a major beneficiary of GB200/300 servers, and production of AirPods in India, as well as the integration with AK Group, will also drive the company's sales growth in the next two years. The bank has raised FIT HON TENG's target price from 4.38 Hong Kong dollars to 4.79 Hong Kong dollars, expecting AI server momentum to drive a revaluation. In addition, Hon Hai's financial report shows that the company's revenue in January was 538.7 billion New Taiwan dollars, an increase of 3.16% year-on-year, but a decrease of 17.74% month-on-month. This was mainly due to the strong momentum in AI cloud products. Hon Hai stated that compared to the same period last year, the company achieved strong growth in the first quarter and expects the first quarter performance to be stronger than the average level of the past five years, more optimistic than the "roughly similar level" mentioned by the company last month. The company also added that the predictability of the first quarter is better than a month ago.