AAC TECH (02018) surged more than 4% in late trading. At the time of writing, the stock was up 3.72% to HK$45.22, with a turnover of HK$569 million. The catalyst is recent news that AAC TECH's subsidiary, Yuandi Technology, has achieved mass production and initiated global batch deliveries for its ATAHORAN series 2.2MW/2.6MW centralized liquid cooling CDUs. Citi anticipates that the liquid cooling business, through the integration of Yuandi Technology, will contribute approximately RMB 200 million in revenue. Yuandi Technology has completed mass production of its Atahoran 2.2MW/2.6MW CDU products, with current monthly CDU capacity reaching 400 units. Furthermore, the bank expects AAC TECH may potentially enter the UQD market of a U.S. cloud service provider later this year by supplying components to an existing supplier. Citi also noted that it forecasts Apple's iPhone 18 production for the second half of 2026 to reach 84 million units, all high-end models, which would boost AAC TECH's touch and VC thermal management businesses. Simultaneously, the bank is optimistic about the company's data center liquid cooling business, believing it holds long-term potential to diversify risks associated with its consumer electronics operations.