The Zhitong Finance App learned that Hongteng Precision (06088) rose by more than 6%. As of press release, it had risen 6.17% to HK$2.41, with a turnover of HK$36.1072 million.

According to Guotai Junan Securities, Hongteng Precision's first Airpods production line is located in Vietnam, and delivery began in the first quarter of 2024; the corresponding business is expected to account for 5%-7% of the company's total revenue in 2024. The company plans to add 6 more production lines in India in 2025. As a result, we expect a surge in production capacity and corresponding revenue growth in 2025. We expect the company's share of Airpods to exceed 30% in the future.

The bank pointed out that management expects double-digit revenue growth for the full year of 2024, gross margin will stabilize at around 20%, and operating profit will increase dramatically. The company also hopes to keep the three major operating expenses below 13% by 2025. The company expects electric vehicles, next-generation 5GaiOT, and acoustics businesses to account for 30% of revenue in 2024 and 40% in 2025. Benefiting from the continued expansion of the Airpods production line, the synergy from the acquisition of FIT Volaira, and the opportunities brought by AI, we expect the company to achieve double-digit revenue growth in 2024-2026, while profits will grow even faster.