Analyst Alex NG of CMB International Securities maintained a Buy rating on FIT Hon Teng Limited (6088 – Research Report), reducing the price target to HK$3.86.
Alex NG has given his Buy rating due to a combination of factors that highlight FIT Hon Teng Limited’s potential for long-term growth. The company’s FY24 revenue growth was in line with expectations, and although net profit growth was below forecasts due to increased operating expenses and one-time costs, the management’s guidance for 2025 remains solid. They anticipate low double-digit revenue growth and high-teens gross profit growth, which suggests a positive outlook.
Despite a recent decline in stock price, attributed to softer sales growth projections and concerns about networking and AirPods ramp-up, Alex NG sees this as a long-term buying opportunity. The company’s order outlook and project wins are on track, and with a significant share price correction, the current valuation presents an attractive entry point. The revised target price of HK$3.86 reflects confidence in the company’s ability to execute its plans and capitalize on upcoming catalysts such as AI server momentum and AirPods launches.