IMPRO PRECISION (01286) surged more than 12%, reaching a high of HK$7.17 to set a new record since its listing. As of the time of writing, the stock was up 12.36% to HK$6.91, with a turnover of HK$41.33 million. The market movement is driven by the "power shortage" sweeping the United States, which is attributed to the surge in demand from AI data centers. Guosheng Securities believes that looking ahead to 2026, AI Data Centers (AIDC) and power shortages will be the core investment themes. Huaxi Securities stated that the rapid global development of AI will lead to a sharp increase in electricity consumption, and demand for power equipment is expected to remain highly robust. The firm is particularly optimistic about overseas supply-constrained segments such as transformers & gas turbines, noting that developed markets like Europe and the U.S. combine high growth, high profitability, and high barriers to entry. Companies with premium channel resources, leading technical capabilities, and active capacity expansion in related areas are poised to benefit significantly. Industrial Securities previously pointed out that IMPRO PRECISION's products are used in a wide range of industries including high-horsepower engines, construction machinery, agricultural machinery, recreational marine vessels, passenger vehicles, commercial vehicles, aviation, energy, and medical, with overall demand stable and trending upward. Among these, segments like high-horsepower engines and robotics are experiencing high growth and possess attractive profit margins. The AIDC boom is driving demand for high-horsepower engines; the company supplies sand-cast cylinder blocks for these engines to manufacturers like Caterpillar and Cummins. In the first half of 2025, revenue from this related business grew 48.3% year-on-year to 530 million yuan, accounting for 21.8% of total revenue. Furthermore, the company has entered the supply chain for the Da Vinci surgical robot and is in discussions with overseas humanoid robotics companies regarding potential collaborations, enhancing its long-term growth prospects.
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