Core Viewpoint - The company is a leading global manufacturer of precision components, with Hon Hai as the actual controller. It continues to focus on deepening its AI product portfolio in connection, power, and liquid cooling systems, thereby enhancing business reach. In Q3 2025, the AI business is expanding, with Cloud/Datacenter revenue reaching $215 million, a year-on-year increase of 34% and a quarter-on-quarter increase of 14%, accounting for 16% of total revenue. The company has updated its guidance for the next three years, projecting optimistic AI growth [1]. Financial Performance - In Q3 2025, the company reported revenue of $1.325 billion, a year-on-year increase of 13%, and a net profit from continuing operations of $74.38 million, a year-on-year increase of 9%. The gross margin for Q3 2025 was 23.5%, an increase of 1.8 percentage points year-on-year and 5.7 percentage points quarter-on-quarter [2]. Revenue Breakdown - In Q3 2025, revenue from various segments included: - Smartphones: $210 million, a year-on-year decrease of 20% - Cloud/Datacenter: $215 million, a year-on-year increase of 34% and a quarter-on-quarter increase of 14% - Consumer Interconnects: $221 million, year-on-year flat - AutoMobility: $240 million, a year-on-year increase of 116% - System Products: $382 million, a year-on-year increase of 3% - Others: $61 million, a year-on-year increase of 30% [2]. Updated Guidance - The company has updated its three-year guidance, projecting a compound annual growth rate (CAGR) in revenue of mid-twenties for 2027/2028, up from a previous low-twenties forecast. The Cloud/Datacenter revenue is expected to account for high teens in 2025, with targets of low twenties in 2026, mid-twenties in 2027, and high twenties in 2028, reflecting confidence in AI business growth [3]. Focus Areas - The company continues to focus on opportunities in the AI industry, emphasizing connections, power, and liquid cooling systems. It offers a range of products related to electrical and optical connections, including chip-to-chip connectors, standard connectors for computing boards, backplane connectors, copper cable solutions, high voltage and high-speed solutions, and optical modules/CPO [3]. Product Launches - In September 2025, the company's subsidiary Huayun Optoelectronics launched a new generation 102.4T CPO ELSFP module, designed to natively support the To maha wk-6 CPO liquid cooling switch. In October 2025, at the OCP conference, the company showcased various products and solutions, including high-speed solutions, switch cooling technology, power busbars, and liquid cooling couplers [4]. Profit Forecast - The company forecasts revenues of $4.78 billion, $6.15 billion, and $7.53 billion for 2025-2027, with net profits of $170 million, $300 million, and $450 million, corresponding to price-to-earnings ratios of 29x, 16x, and 11x, respectively, maintaining a "buy" rating [4].