Changes in Hong Kong stocks | Huiju Technology (01729) rose nearly 7% in the afternoon. Institutions say Leoni's integration results exceeded expectations, and the computing power business was clearly underestimated

The Zhitong Finance App learned that Huiju Technology (01729) rose nearly 7% in the afternoon. As of press release, it had risen 5.64% to HK$16.3, with a turnover of HK$162 million.

According to the news, Huiju has completed a 100% equity merger in Leoni Cable. China Merchants Securities pointed out that since the acquisition of Leoni Cable's business, the consolidation effect of Gathering has exceeded expectations. The completion of 100% equity merger will significantly increase the consolidated revenue and profit scale (LCS 2025's annual revenue is about HK$12 billion, and profit after tax is about HK$125 million. We judge that 26H1 has grown steadily and net interest rate has increased significantly).

The bank believes that the concentrated computing power business is clearly underestimated, that its main MPO and AI server businesses have maintained rapid growth, and that new product lines such as CPO for optical communication and 800v power lines are imminent, which are expected to contribute considerable performance flexibility. Gathering the current low value highlights, there is considerable room for improvement, and the “Highly Recommended” rating is maintained.