Hongfa Technology stands to benefit from high-voltage direct current trend in new energy vehicles and artificial-intelligence data centers, Daiwa Capital Markets analysts say in a research report. The penetration rate of HVDC relays, which the Chinese company makes, is swiftly rising due to trends toward higher voltage in NEVs and AIDCs, the analysts say. The company is an electrical relay manufacturer with downstream applications covering segments such as automotive and AIDCs. Daiwa expects Hongfa Technology to capture market share of AIDCs comparable to its NEVs' market share. The brokerage initiates coverage of the stock with a buy rating and a target price of 44.00 yuan. Shares are 4.8% higher at 38.07 yuan. (ronnie.harui@wsj.com)