HK Stock Market Move | Hongteng Precision (06088) surged nearly 10% during midday trading as management raised guidance based on strong prospects for AI servers.

Hongteng Precision (06088) rose nearly 10% in midday trading, up 8.97% as of the time of drafting, at HK$5.95, with a turnover of HK$390 million. In terms of news, Hongteng Precision recently released its annual performance, with revenue of US$5.03 billion, a year-on-year increase of 12.39%; the company's attributable profit was US$156 million, a year-on-year increase of 1.51%. The revenue of cloud network infrastructure business grew by 37.6% year-on-year, primarily driven by the demand for AI driving an increase in shipments of copper-based parts in the server market; the revenue of the automotive business increased by 94.0% year-on-year, mainly due to the full-year contribution of Germany's Auto-Kabel Group. Zhongyin International released a research report stating that during the performance conference call, Hongteng Precision's management reiterated a positive view on the momentum of cloud/data centers, based on large-scale AI server upgrades and mass production of new products in FY26-28E. The management guided for a 70% year-on-year growth in cloud/data center revenue in 2026E, and raised the guidance for the proportion of cloud business revenue in FY26-28E to 20% mid-range/20% high-range/30% low-range.