Market Insight | FIT HON TENG Precision Industries' stock price surged by over 12%, benefiting from increased demand for Apple's phone upgrades and AI servers

FIT HON TENG's stock price has increased by more than 12%, reaching a 12.08% increase to HKD 2.69 at the time of publication, with a turnover of HKD 1.17 billion. CMB International believes that Apple's AI feature updates released at WWDC this time basically meet the market's previous expectations. Considering that only products such as the iPhone 15 Pro series and devices using the M1 or newer chips can use Apple Intelligence, the bank expects a product update replacement demand in the third quarter of this year. Related supply chain companies including FIT HON TENG are expected to benefit. In addition, NVIDIA has announced a new product roadmap, showcasing the full range of Blackwell products and teasing the Rubin next-generation platform for 2026, accelerating product iterations and driving explosive growth in AI+ applications from the supply side. CMB International points out that FIT HON TENG is one of the world's leading server connector manufacturers, with management expecting a year-on-year growth of 15-20% in server/interconnect business revenue in 2024. AI server-related product revenue will account for 8-10% of total revenue, a significant increase compared to 1% in 2023