Lyon: Reiterate Blue Technology (06613.HK) "outperform market" rating, expected acquisition of Element10 Technology to enter Nvidia (NVDA.US) supply chain.

According to the Wisdom Finance APP, Lyon released a research report stating that Blue Thinking Technology (06613.HK) announced its intention to acquire over 95% of the equity of YS Tech, which is engaged in the production and sale of server cabinets and structural components, server liquid cooling modules and other businesses. YS Tech is a supplier to Nvidia (NVDA.US). The bank expects the transaction to be completed next year, which will help Blue Thinking Technology enter Nvidia's AI server supply chain and drive rapid growth in its AI server business scale. Therefore, it reiterates its "outperform market" rating and maintains a target price of 38 Hong Kong dollars. Lyon currently estimates that due to this acquisition, Blue Thinking Technology will add 800 million to 1 billion yuan in revenue next year, as well as 100 million to 200 million yuan in net profit.