HK Stock Market Move | Huaqin Co., Ltd. (03296) saw an increase of over 5% in the afternoon, with its performance in the first half of the year exceeding expectations. The data center business is expected to become an important performance catalyst.

Huaqin Co., Ltd. (03296) rose more than 5% in the afternoon, and as of the time of this report, it has increased by 5.47%, reaching HKD 67.5, with a trading volume of HKD 74.826 million. In terms of news, Huaqin Co., Ltd. previously announced that it expects revenue for the first half of the year to be between RMB 93 billion and RMB 95 billion, with a year-on-year growth of 10.8% to 13.2%. Net profit attributable to the parent company is expected to be between RMB 2.9 billion and RMB 3.05 billion, with a projected year-on-year growth of 53.5% to 61.5%. During the reporting period, the mobile terminal business and computing and data business experienced steady growth, while innovative businesses grew rapidly, driving continued growth in the company's operating performance. JP Morgan previously released a research report stating that Huaqin's second-quarter earnings forecast exceeded expectations. The bank expects that as the cabinet-level AI projects enter the mass production stage, the data center business will become a major performance catalyst starting from the second half of 2026. Against the backdrop of a domestic market transitioning to cabinet-level AI infrastructure, Huaqin is expected to be a major beneficiary, leveraging its full-stack capabilities in AI/general servers and high-speed switches, which would lead to an upward adjustment in its valuation.