FIT HON TENG (06088) saw its shares surge more than 14% during morning trading. At the time of writing, the stock was up 14.48%, reaching HK$6.88, with a turnover of HK$588 million.

An analysis report noted that FIT HON TENG has successfully transitioned from manufacturing "precision components" to providing "system-level interconnect solutions." In the field of artificial intelligence, the company is benefiting from the rapid growth of the global optical module market. It has strategically positioned itself in 224G high-speed interconnects, 800G/1.6T optical modules, and CPO solutions, with its products already being adopted by a key North American customer. In the electric vehicle sector, as 800V platforms become more common and autonomous driving technology advances, the value of connectors per vehicle has increased significantly. Through the acquisitions of Voltaira and Auto-Kabel, the company has established a vertically integrated structure covering "sensing-connection-power management-high voltage" and has successfully entered emerging markets such as Saudi Arabia.

A separate analysis highlighted that the market has long viewed FIT HON TENG as a traditional "consumer electronics assembly/cable manufacturer." However, with the company's substantive breakthroughs in AI server interconnects and electric vehicle business, its revenue structure is shifting towards higher-margin, higher-barrier "connector and core component manufacturing." The progress in customer certification and mass production of new, high-margin products like optical modules, CPO technology, and high-voltage automotive connectors will be crucial for optimizing its product mix and driving continuous improvement in overall gross margin. High-margin related businesses are expected to see significant earnings contribution by 2026.