Morgan Stanley: Initiates coverage of TIME INTERCON (01729) with an outperform rating and a target price of HK$32.5.

Macquarie released a research report stating that for the first time, it has given a "Outperform" rating to TIME INTERCON (01729), with a target price of HK$32.5. The company has been included in Macquarie's selected buy list. The report pointed out that TIME INTERCON is transitioning from a manufacturer of wire components to a global connectivity platform serving AI data centers, servers, and the automotive industry. Through the acquisitions of Leoni and Techtronic, as well as securing new orders from cloud service providers in the fiber optic cable components sector, the company is expected to achieve a compound annual growth rate of 50% in revenue from 2026 to 2028. Macquarie believes that AI is the key catalyst for TIME INTERCON. It predicts that the company will benefit from the integration of Leoni and Techtronic, customer diversification, expansion of AI connected products, and growth in the server ODM business. The operating profit and net profit of TIME INTERCON are expected to achieve a compound annual growth rate of 72% and 69%, respectively, from 2026 to 2028. Further mergers and acquisitions are seen as potential drivers, while the industrial sector offers untapped growth opportunities.