Core Viewpoint - The report from China Merchants Securities maintains a "strong buy" rating for Huiju Technology (01729), highlighting its significant role within the Luxshare ecosystem and its potential for high-quality growth in various sectors, including optical communication, AI servers, automotive, and medical equipment [1] Recent Events - Huiju Technology is expected to announce a profit forecast on January 16, 2026, predicting a net profit growth of 60% to 70% year-on-year for 2025, translating to approximately HKD 720 million to HKD 770 million [2] Revenue Growth Drivers - The anticipated revenue growth is primarily driven by increased sales orders in the data center and server segments, with significant contributions from domestic server demand from companies like Alibaba and ByteDance, as well as positive integration effects from the acquisition of Leoni [2] Future Outlook - For 2026, the global AI computing power construction is expected to remain robust, benefiting Huiju's MPO and server assembly businesses. The company is well-positioned with its MPO products aligning with trends in multi-core and high-density technology, and it is expanding its production capacity in North America and Europe [3] Strategic Acquisitions - The successful acquisition of a 49% stake in Leoni's cable solutions business and the completion of the Dejinchang acquisition are expected to enhance Huiju's capacity and supply security. The integration of Leoni is anticipated to exceed expectations, with improvements in profit levels driven by automation and new customer introductions [4] Long-term Growth Potential - The medical equipment segment is projected to benefit from increasing demand due to aging populations and heightened health awareness, with investments in wearable medical technology opening new growth avenues [4]