FIT Hon Teng Limited (6088) AI Stock Analysis

• Market Cap: HK$14.88B
• Dividend Yield: N/A
• Average Volume (3M): 38.93M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 1.15
• Revenue Growth: 5.75%
• EPS Growth: 18.75%
• Country: HK
• Employees: 61,720
• Sector: Technology
• Sector Strength: 68
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.17
• Shares Outstanding: 7,294,739,000
• 10 Day Avg. Volume: 28,905,844
• 30 Day Avg. Volume: 38,931,304
• PEG Ratio: 0.66
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.98
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 36.43
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$3.86
• Price Target Upside: 83.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

FIT Hon Teng Limited shows a strong financial performance with revenue growth and stable profitability. However, the technical analysis indicates bearish trends with the stock being oversold, which might pose short-term challenges. Valuation is fair, but the lack of dividend yield might limit its appeal. Improving cash flows and market sentiment could enhance its overall standing.

Positive Factors

AI Server Products

FIT's GB200 AI server products are set to begin small volume shipments, with mass production expected to drive revenue growth in connectivity, cooling, and power-related products.

Product Mix and Efficiency

FIT Hon Teng's revenue and net profit growth, supported by a better product mix with AI server product rollout and improved cost control, aligns with prior guidance.

Valuation

The stock trades at an attractive valuation compared to expected EPS growth, reinforcing the BUY recommendation.

Negative Factors

Operating Expenses

Net profit growth of 19% was below market expectations due to higher operating expenses and one-off expenses.

Sales Growth

Stock price decreased due to potentially softer 2025 sales growth compared to the 20% three-year sales CAGR guidance.

FIT Hon Teng Limited Business Overview & Revenue Model

Company Description

FIT Hon Teng Limited (6088) is a leading global provider specializing in the electronic interconnect solutions sector. The company focuses on the design, development, and manufacturing of a wide range of products including connectors, cables, and related components used in various electronic devices and applications. FIT Hon Teng serves diverse industries such as consumer electronics, automotive, telecommunications, and data centers, offering high-quality and innovative solutions to meet the evolving technological demands.

How the Company Makes Money

FIT Hon Teng Limited generates revenue primarily through the sale of its electronic interconnect solutions, including connectors and cables, to a broad spectrum of industries. The company's key revenue streams include direct sales to original equipment manufacturers (OEMs) and other businesses in sectors such as consumer electronics, automotive, and telecommunications. FIT Hon Teng leverages strategic partnerships and collaborations with major technology companies to enhance its product offerings and expand its market reach. Additionally, the company benefits from its global manufacturing and distribution network, which enables it to efficiently serve a diverse customer base and capitalize on the growing demand for advanced electronic components in various technological applications.

FIT Hon Teng Limited Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
4.20B	4.53B	4.49B	4.31B	4.37B
	Gross Profit
807.14M	767.84M	673.01M	579.77M	754.20M
	EBIT
262.83M	307.38M	128.99M	124.76M	275.17M
	EBITDA
463.12M	534.66M	379.98M	374.65M	550.20M
	Net Income Common Stockholders
128.97M	169.62M	137.63M	42.51M	235.41M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.32B	979.87M	867.46M	899.41M	1.02B
	Total Assets
5.09B	4.55B	5.01B	4.64B	4.41B
	Total Debt
1.44B	1.08B	1.32B	1.22B	1.11B
	Net Debt
118.91M	164.49M	551.44M	458.41M	214.58M
	Total Liabilities
2.66B	2.20B	2.61B	2.45B	2.33B
	Stockholders Equity
2.43B	2.35B	2.39B	2.19B	2.07B
Cash Flow		Free Cash Flow
263.05M	425.01M	-156.31M	-251.77M	58.30M
	Operating Cash Flow
573.63M	556.45M	84.90M	115.08M	313.04M
	Investing Cash Flow
-410.21M	-66.16M	-219.83M	-355.60M	-417.32M
	Financing Cash Flow
248.58M	-270.24M	119.75M	71.25M	-64.46M

FIT Hon Teng Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 2.1 is above the 20-day moving average (MA) of 2.00, below the 50-day MA of 2.65, and below the 200-day MA of 2.84, indicating a bearish trend. The MACD of -0.20 indicates Negative momentum. The RSI at 36.76 is Neutral, neither overbought nor oversold. The STOCH value of 46.76 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
0669	78 Outperform	$149.11B	17.01	18.52%	2.42%	6.13%	14.88%
2318	72 Outperform	$926.38B	6.69		5.29%	11.71%	37.04%
2313	70 Outperform	$82.83B	12.24	18.17%	3.76%	12.76%	34.50%
2382	65 Neutral	$74.11B	25.22	11.45%	0.34%	18.80%	142.93%
Sector *	60 Neutral	$10.94B	10.58	-7.08%	2.98%	7.52%	-12.04%
6088	55 Neutral	HK$14.88B	12.42	6.27%	―	5.75%	18.75%
2038	43 Neutral	$5.96B	―	-1.35%	―	-11.86%	83.17%

FIT Hon Teng Limited Corporate Events

FIT Hon Teng Limited Reports Strong Financial Growth in 2024

FIT Hon Teng Limited reported a revenue increase of 6.1% to US$4,451 million for the year ending December 31, 2024, with profits rising by 19.1% to US$154 million. Despite the financial growth, the company did not declare a final dividend for the year, indicating a strategic focus on reinvestment or other financial priorities. This performance underscores the company’s solid positioning in the interconnect technology market, reflecting its ability to enhance profitability and shareholder value amid competitive industry conditions.

FIT Hon Teng Limited Schedules Board Meeting to Discuss Annual Results and Dividend

FIT Hon Teng Limited has announced a board meeting scheduled for March 12, 2025, to discuss and approve the company’s annual results for the year ending December 31, 2024. The board will also consider recommending a final dividend for the same period, which could impact shareholder returns and the company’s financial strategy.

FIT Hon Teng Limited Announces Strategic Joint Venture in Vietnam

FIT Hon Teng Limited announced a strategic investment through its subsidiary New Wing Interconnect Technology (Bac Giang) Co., Ltd., entering a joint venture with Goertek Electronics Vietnam Co. Ltd. The agreement involves an injection of US$50 million, granting New Wing a 25% stake, while the rest is owned by an independent third party. This investment highlights the company’s strategic expansion efforts and potential growth in the electronics sector, although it does not meet the criteria of a notifiable transaction under Hong Kong’s listing rules.