FIT Hon Teng Limited (6088) AI Stock Analysis

• Market Cap: HK$37.68B
• Dividend Yield: N/A
• Average Volume (3M): 143.48M
• Price to Earnings (P/E): 31.6
• Beta (1Y): 1.37
• Revenue Growth: 4.33%
• EPS Growth: -10.79%
• Country: HK
• Employees: 61,720
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.03
• Shares Outstanding: 7,303,739,000
• 10 Day Avg. Volume: 84,182,669
• 30 Day Avg. Volume: 143,484,253
• PEG Ratio: 1.13
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.75
• P/FCF Ratio: -25.06
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$6.45
• Price Target Upside: 20.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: HK$5.50 ▲(2.80% Upside)

The overall stock score of 58 reflects FIT Hon Teng Limited's solid financial performance, particularly in revenue growth and profitability. However, the stock's technical indicators suggest potential short-term weakness, and its valuation appears high, which could limit upside potential. The absence of free cash flow is a concern for liquidity and future growth.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates strong market demand and effective sales strategies, which can drive long-term business expansion.

Stable Profitability

Stable profitability through consistent gross margins supports sustainable business operations and provides a cushion for future investments.

Robust Balance Sheet

A strong balance sheet with healthy equity and manageable leverage enhances financial stability and supports strategic growth initiatives.

Negative Factors

Cash Flow Management

Lack of free cash flow in 2024 raises concerns about liquidity and the company's ability to fund operations and growth without external financing.

Earnings Decline

A decline in EPS growth suggests potential challenges in profitability, which could impact investor confidence and the company's valuation over time.

Operational Efficiency

Moderate EBIT margins indicate potential inefficiencies in operations, which may limit profitability and competitiveness if not addressed.

FIT Hon Teng Limited Business Overview & Revenue Model

Company Description

FIT Hon Teng Limited, a subsidiary of the Hon Hai Precision Industry Co., Ltd., is a leading provider of connectivity solutions and electronic components, primarily serving the telecommunications, consumer electronics, and automotive sectors. The company specializes in the design and manufacturing of high-quality connectors, antennas, and cable assemblies, which are integral to the functionality of various electronic devices and systems.

How the Company Makes Money

FIT Hon Teng Limited generates revenue through the sale of its electronic components and connectivity solutions, with key revenue streams coming from its diverse product offerings that cater to various industries, including telecommunications, consumer electronics, and automotive sectors. The company benefits from long-term relationships with major clients, providing customized solutions that enhance customer retention and ensure consistent demand. Additionally, FIT Hon Teng capitalizes on technological advancements and increasing market demand for high-speed connectivity, driving growth in its core product lines. Strategic partnerships with leading technology firms further bolster its market presence and contribute to revenue growth.

FIT Hon Teng Limited Financial Statement Overview

Summary

FIT Hon Teng Limited demonstrates strong revenue growth and stable profitability, supported by a robust balance sheet with reasonable leverage. However, cash flow management requires attention due to the absence of free cash flow in 2024, which could impact liquidity and future growth.

Income Statement

FIT Hon Teng Limited has shown a solid performance in its income statement with a consistent increase in total revenue from $4.19B in 2023 to $4.45B in 2024, indicating a positive revenue growth rate. The gross profit margin is stable, enhancing profitability with a gross profit of $878.65M in 2024. Net profit and EBITDA margins are improving, reflecting efficient cost management and operational strength. However, the EBIT margin remains moderate, suggesting room for operational efficiency improvements.

Balance Sheet

The company's balance sheet is robust with a favorable equity ratio, as stockholders' equity is 45.2% of total assets in 2024. The debt-to-equity ratio remains reasonable at 0.65, indicating manageable leverage. Return on equity is improving, driven by higher net income. However, there is a slight increase in total liabilities, which could pose a risk if not managed properly.

Cash Flow

Cash flow management shows some areas of concern, with no free cash flow reported in 2024, compared to a healthy free cash flow of $263.05M in 2023. The operating cash flow to net income ratio has weakened, suggesting potential difficulties in converting profits into cash. Efficient capital management and enhanced operating cash flow are needed to strengthen liquidity and support future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.69B	4.45B	4.20B	4.53B	4.49B	4.31B
Gross Profit	885.97M	878.65M	807.14M	767.84M	673.01M	579.77M
EBITDA	459.76M	520.05M	463.12M	475.62M	350.80M	374.65M
Net Income	152.72M	153.73M	128.97M	169.62M	137.63M	42.51M
Balance Sheet
Total Assets	5.74B	5.47B	5.09B	4.55B	5.01B	4.64B
Cash, Cash Equivalents and Short-Term Investments	1.30B	1.18B	1.32B	979.87M	867.46M	899.41M
Total Debt	1.91B	1.60B	1.44B	1.08B	1.32B	1.22B
Total Liabilities	3.18B	2.99B	2.66B	2.20B	2.61B	2.45B
Stockholders Equity	2.55B	2.47B	2.43B	2.35B	2.39B	2.19B
Cash Flow
Free Cash Flow	129.94M	-132.81M	263.05M	425.01M	-156.31M	-251.77M
Operating Cash Flow	294.64M	252.92M	573.63M	556.45M	84.90M	115.08M
Investing Cash Flow	-172.44M	-474.61M	-410.21M	-66.16M	-219.83M	-355.60M
Financing Cash Flow	-38.83M	58.82M	248.58M	-270.24M	119.75M	71.25M

FIT Hon Teng Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.35
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6088, the sentiment is Negative. The current price of 5.35 is below the 20-day moving average (MA) of 5.77, below the 50-day MA of 5.53, and above the 200-day MA of 3.51, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 44.53 is Neutral, neither overbought nor oversold. The STOCH value of 20.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6088.

FIT Hon Teng Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0285	67 Neutral	$79.31B	16.39	14.34%	1.74%	17.48%	10.65%
2382	65 Neutral	$77.17B	21.76	13.28%	0.76%	7.53%	87.77%
1415	65 Neutral	HK$25.97B	19.43	33.34%	―	184.87%	276.87%
0732	64 Neutral	$3.35B	12.88	2.87%	9.52%	2.59%	0.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
6088	58 Neutral	HK$37.68B	31.64	6.17%	―	4.33%	-10.79%
1478	52 Neutral	HK$14.87B	29.13	9.13%	1.25%	17.21%	166.36%

FIT Hon Teng Limited Corporate Events

FIT Hon Teng Limited Reports Revenue Growth but Decline in Profit for H1 2025

FIT Hon Teng Limited reported its interim financial results for the first half of 2025, showing a revenue increase of 11.5% year-on-year to $2.305 billion. Despite the revenue growth, the company’s profit decreased by 7.5% to $30 million, and basic earnings per share fell by 3.4%. The board did not declare an interim dividend for this period. These results highlight a challenging financial environment where increased revenue did not translate into higher profitability, potentially impacting investor sentiment and future strategic decisions.

The most recent analyst rating on (HK:6088) stock is a Buy with a HK$4.38 price target. To see the full list of analyst forecasts on FIT Hon Teng Limited stock, see the HK:6088 Stock Forecast page.