Core Viewpoint - The report from Caitong Securities initiates coverage on Hongteng Precision (06088) with a "Buy" rating, highlighting the company's leading position in the connector industry and its growth potential in the "AI computing power + electric vehicles" sectors [1] Group 1: Core Competence Leap - The company has upgraded from "precision parts" to "system-level interconnection solutions," leveraging 40 years of connector technology accumulation and strategic acquisitions to cover a full product line in optics, electricity, and vehicles [1] - With a global R&D and manufacturing network, the company has transitioned from a single component supplier to a system solution provider, offering customized capabilities from concept to mass production [1] Group 2: Growth Momentum - AI and automotive businesses have become the dual engines of growth, with the implementation of a "3+3" transformation strategy yielding significant results [2] - By the first half of 2025, revenue from cloud network facilities and automotive sectors is expected to exceed traditional consumer electronics for the first time, accounting for 35.3% of total revenue, driven by the rapid growth of AI and EV businesses at rates of 35.7% and 102.3%, respectively, compared to the overall company revenue growth of 11.53% [2] Group 3: Technological Upgrade - The company is seizing opportunities in the AI computing infrastructure and automotive neural network markets [3] - On the AI side, the company benefits from the high growth of the global optical module market (CAGR > 30%) and has developed 224G high-speed interconnects, 800G/1.6T optical modules, and CPO solutions, with products already introduced to key customers in North America [3] - On the EV side, as the 800V platform becomes more widespread and autonomous driving levels improve, the value of connectors per vehicle is increasing. The company has integrated Voltaira and Auto-Kabel through acquisitions to establish a vertically integrated layout for "sensing-connection-power management high voltage," successfully entering emerging markets like Saudi Arabia [3]