FIT HON TENG (06088) jumped more than 18% in early trading, reaching a high of HK$5.30 and setting a new peak since January 2018. The stock has accumulated gains exceeding 80% within the month. As of press time, shares were up 17.41% to HK$5.26 with trading volume of HK$924.4 million.

FIT HON TENG recently released its interim results, recording revenue of US$2.305 billion for the first half, representing an 11.53% year-on-year increase. Profit attributable to shareholders reached US$31.511 million, down 3.11% compared to the same period last year.

China Merchants Bank International published a research report stating that following post-earnings NDR discussions with management, the institution is optimistic about FIT HON TENG's accelerated business transformation in the second quarter. The two strategic business segments - AI cloud business and automotive business - saw their combined revenue contribution rise to 36% in Q2 (compared to 24% in 2024), with year-on-year growth of 28% and 115% respectively in the second quarter.

Overall, the institution maintains a positive outlook on FIT HON TENG's "3+3 Strategy" for 2026-27, which focuses on: cloud/AI server products (securing projects in processor interfaces and co-packaged optics CPO, while gaining market share in power supply and liquid cooling solutions); and AirPods capacity expansion (expecting 2-3 production lines in FY25, with a long-term target of 6 production lines).

The institution believes the recent stock price surge reflects market optimism about liquid cooling and thermal management opportunities in AI servers.