FIT HON TENG (06088) surged more than 4%, reaching HK$5.46 by the time of writing, with a trading volume of HK$185 million. The rally follows Foxconn's latest earnings report, which revealed that its AI server business has become a key growth driver. Foxconn's October revenue hit a record high of NT$895.7 billion, surpassing September's NT$837 billion and significantly exceeding the NT$804.8 billion recorded in the same period last year. This represents a month-on-month increase of 7.01% and a year-on-year rise of 11.29% (15.4% in USD terms).

Morgan Stanley recently initiated coverage on FIT HON TENG with an "Overweight" rating and a target price of HK$8, implying 22x and 17x forward P/E multiples for fiscal years 2026 and 2027, respectively. The investment bank highlighted FIT HON TENG's strong positioning within the Foxconn Group to benefit from the AI component trend. Morgan Stanley expects FIT HON TENG's AI-related revenue to grow significantly over the next 2-3 years, noting that this positive outlook is not yet fully reflected in the current share price. The firm views FIT HON TENG as a key enabler of AI infrastructure.