On June 18th, Hongteng Precision (6088.HK) rose in the afternoon, with a maximum increase of more than 19% to HKD 3.53, setting a new high since February 2021, and the stock has risen by about 190% this year. Apple recently announced its AI strategy. CMB International believes that the AI function updates released by Apple at WWDC basically meet the market's earlier expectations. Considering that only devices using the Apple Intelligence are the iPhone 15 Pro series and those equipped with M1 or newer chips in the product line that has been launched, the bank expects to have replacement demand for updated products in the third quarter of this year. Related supply chain companies including Hongteng Precision will benefit. In addition, the electronic manufacturing giant, Foxconn, previously stated that servers equipped with Nvidia GB200 are expected to be mass-produced in September 2024. It is reported that GB200 uses high-speed copper cable solutions, and the value of a single NVL72 copper cable is about 500,000 yuan. CMB International pointed out that Hongteng Precision is one of the world's leading server connector manufacturers. The management expects that the revenue from server/interconnection business will grow by 15-20% year-on-year in 2024, and the revenue from AI server-related products will account for 8-10% of the income, which is a large increase compared to 1% in 2023.