Shares of TIME INTERCON (01729) climbed more than 8% during intraday trading before settling 6.34% higher at HK$17.78, with turnover reaching HK$292 million by the time of writing.

The company posted its interim results for fiscal 2026, reporting revenue of approximately HK$10.066 billion, a year-on-year increase of 107.4%. Net profit attributable to shareholders rose roughly 1.64 times to about HK$828 million, with basic earnings per share of HK$0.3949 and an interim dividend of HK$0.06 per share.

The substantial revenue growth was driven by three key factors: the consolidation of the Dejinchang acquisition contributed HK$2.89 billion in revenue from the copper wire business; server segment revenue expanded 68% year-on-year; and data center-related revenue within the wire and cable components division, led by MPO products, grew 23%.

According to CMSC, the company's first-half net profit attributable to parent reached HK$830 million, up 164% year-on-year, landing near the upper end of the previously guided range. The brokerage noted solid contributions across MPO, servers, Leoni, and the copper wire segment.

The firm maintains its earlier view that the market significantly underestimates the value of TIME INTERCON's computing power business. While the MPO core business continues to grow rapidly, new products such as optical communication CPO and 800V power cables are poised for imminent volume ramp-up.

At the current share price level, the company's undervaluation is evident, leaving substantial upside potential. Given the likelihood of results exceeding expectations, CMSC reiterates its "strong buy" rating on the stock.