HANS CNC's stock surged 5.28% during intraday trading on Friday, marking a significant rebound for the company.
The sharp rise was driven by two key positive developments. First, the company reported robust first-quarter financial results, with revenue reaching 19.55 billion RMB, a year-over-year increase of 103.69%, and net profit soaring 176.53% to 3.23 billion RMB. This performance was fueled by strong demand for its AI server PCB specialized processing equipment and increased sales of high-value-added innovative products.
Second, the rally was supported by Citibank initiating coverage on the company's H shares with a Buy rating and a target price of 160 HKD. The bank highlighted management's expectation that AI-related product revenue could contribute 50%-60% in the second half of the year, which may lead to margin improvement. This positive analyst action provided additional confidence to investors, contributing to the stock's upward movement.