HK Stock Market Move | Hongteng Precision (06088) rises by over 10% again. The company benefits from the high growth of the global optical module market, and the gross profit margin is expected to continue to improve.

Hongteng Precision (06088) rose by over 10% again, rising 8.82% as of the time of publication, to HK$6.54, with a trading volume of HK$313 million. Caitong released a research report stating that Hongteng Precision has upgraded from "precision components" to "system-level interconnect solutions." In terms of AI, the company benefits from the high growth of the global optical module market and has laid out 224G high-speed interconnect, 800G/1.6T optical module, and CPO solutions, with products already introduced to key customers in North America. On the EV side, with the popularization of the 800V platform and the improvement of autonomous driving levels, the value volume of connectors per vehicle has surged. The company has strategically integrated Voltaira and Auto-Kabel through mergers and acquisitions to build a vertical integration layout of "sensors-connectors-power management-high voltage" and has successfully tapped into emerging blue ocean markets such as Saudi Arabia. Guotou Securities International previously released a research report stating that the market has long regarded Hongteng Precision as a traditional "consumer electronics assembly/cable factory," but with the substantial breakthroughs in the company's AI server interconnection and electric vehicle businesses, its revenue structure is transforming towards a "connector and core component factory" with high margins and high barriers to entry. The certification and mass production progress of high-margin new products such as optical modules, CPO technology, and automotive high-voltage connectors will be crucial in optimizing product structure and driving continuous improvement in overall profit margins. High-margin related businesses are expected to see a significant increase in performance by 2026.