Core Viewpoint - The company is positioned for significant growth driven by the increasing demand for AI computing power and the expansion of its MPO product offerings, supported by strategic acquisitions and automation enhancements in production processes [1][2][3][4]. Group 1: AI Computing and MPO Demand - The surge in AI computing power is driving high demand for MPO products, with a trend towards higher core counts and density in product offerings [1]. - The company’s fiber optic products primarily consist of MPO and LC types, with MPO fiber jumpers available in various core counts, and ongoing collaboration with clients to develop high-end specialty fiber products [1]. Group 2: Global Capacity and Production Expansion - The company has a robust global capacity reserve with production bases in key regions including the Yangtze River Delta, Pearl River Delta, and overseas locations in Vietnam and Mexico, bolstered by the acquisition of Leoni Kable [2]. - The company is expanding its production lines in the Huizhou factory to cater to major clients and is enhancing global supply capabilities through production expansions in Mexico and Europe [2]. Group 3: Technological Advancements and Automation - The company leads in MPO manufacturing technology, achieving high precision and yield in core production processes, which has garnered strong customer recognition [2]. - Significant investments in automation, supported by the Lixun Robotics team, have led to the development of various automated fiber optic equipment, which is expected to improve production efficiency and profit margins [2]. Group 4: Strategic Acquisitions and Business Growth - The acquisition of Leoni's cable solutions business is progressing well, with expectations of improved profitability and operational efficiency in the coming years [3]. - The company has signed an acquisition agreement for Dejinchang, which focuses on copper wire products, enhancing supply security and vertical integration [3]. - The server business is anticipated to maintain high growth due to the booming AI server market [3]. Group 5: Investment Rating and Financial Projections - The company maintains a "strong buy" investment rating, benefiting from its strategic positioning in the MPO optical communication and AI server sectors, with expectations of high-quality growth [4]. - Revenue projections for 2025, 2026, and 2027 are set at HKD 10.2 billion, HKD 12.9 billion, and HKD 16.6 billion, respectively, with net profits of HKD 710 million, HKD 1.21 billion, and HKD 1.7 billion, reflecting a positive outlook on profitability [4].