Analyst Alex NG from CMB International Securities maintained a Buy rating on FIT Hon Teng Limited and increased the price target to HK$6.77 from HK$4.96.
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Alex NG has given his Buy rating due to a combination of factors including FIT Hon Teng’s solid performance in the third quarter of 2025 and promising AI revenue projections for the upcoming years. The company reported a 13% year-over-year increase in revenue and a 9% rise in net profit, aligning with previous guidance and expectations. This growth is driven by strong demand in AI server products and synergy in the automobility sector, resulting in a record-high gross profit margin of 23.5%.
Looking forward, management has provided optimistic guidance for 2025, expecting high-single-digit revenue growth and maintaining a gross profit margin around 20%. Additionally, the updated forecast for 2026-2028 anticipates mid-20% revenue growth, with a significant contribution from AI and cloud services. These factors, combined with an enhanced product pipeline and strategic partnerships, position FIT Hon Teng well for future growth, justifying the increased target price and Buy recommendation.