TIME INTERCON (01729) rose nearly 9% again; as of writing, the stock was up 6.4% to HK$15.96, with a turnover of HK$119 million. The company previously issued a profit alert, forecasting a 60%-70% year-on-year increase in net profit for 2025. China Merchants Securities believes the revenue growth is primarily driven by increased sales orders from the data center and server segments within the wire assembly division, boosting overall group income. The outperformance is mainly attributed to significant revenue growth in the server business in 2025, fueled by robust demand for domestic servers from clients like Alibaba and ByteDance, coupled with the better-than-expected integration effects of the Leoni cable business in the second half of the year, contributing to profit expansion. The brokerage points out that TIME INTERCON is a key component of the Luxshare Precision ecosystem, optimally positioned in high-growth sectors such as MPO optical communication and AI servers within the data communications business, which is expected to drive high-quality growth. The automotive business, benefiting from the successful acquisition of Leoni's cable business, is poised to rapidly ascend to become a top-tier global automotive cable supplier. The medical equipment business represents a long-term, high-potential sector with a solid foundation, where the company is actively expanding into cutting-edge areas. Leveraging synergies and empowerment from the Luxshare Precision system, the company's medium to long-term growth prospects appear promising.
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