Hontron Precision Soars Over 17% in Early Trade, Stock Price Refreshes New High Since January 2018! Institution Views Hontron's "3+3 Strategy" for 2026-27 with Positive Attitude

Hontron Precision (06088) soared over 18% in early trade, reaching a new high of 5.30 Hong Kong dollars, with a cumulative increase of over 80% for the month. As of the publication date, the stock price rose by 17.41%, standing at 5.26 Hong Kong dollars, with a trading volume of HK$9.244 billion.

Hontron Precision recently released its mid-term performance report, showing revenue of $23.05 billion for the first half, an increase of 11.53% year-on-year; net profit attributable to shareholders was HK$31.51 million, a decrease of 3.11% year-on-year. An institution's research report noted that after communicating with management and reviewing performance, they looked favorably on Hontron's accelerated business transformation in the second quarter, which includes two strategic business segments: AI cloud services/automotive services, accounting for 36% of the company's revenue (24% in 2024), with year-on-year growth rates of 28%/115%, respectively.

Overall, the institution views Hontron's "3+3 strategy" for 2026-27 positively: cloud/AI server products (obtaining projects in processor interfaces/encapsulation optical devices CPO; enhancing market share in power/liquid cooling); and increasing AirPods production capacity (expected to reach 2-3 production lines in the 25th fiscal year, with a long-term LT target of 6 production lines). The institution believes that recent stock price increases reflect investors' optimistic outlook on AI server liquid cooling/heat dissipation opportunities.