FIT Hon Teng Limited (6088) AI Stock Analysis

• Market Cap: HK$19.06B
• Dividend Yield: N/A
• Average Volume (3M): 47.18M
• Price to Earnings (P/E): 15.5
• Beta (1Y): 1.15
• Revenue Growth: 5.75%
• EPS Growth: 18.75%
• Country: HK
• Employees: 61,720
• Sector: Technology
• Sector Strength: 90
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.13
• Shares Outstanding: 7,294,739,000
• 10 Day Avg. Volume: 49,286,021
• 30 Day Avg. Volume: 47,177,403
• PEG Ratio: -1.40
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.51
• Enterprise Value/Market Cap: 0.14
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 2.99
• Enterprise Value/Ebitda: 1.44
• 1Y Price Target: HK$3.48
• Price Target Upside: 32.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: HK$3.00 ▲(14.50%Upside)

The overall stock score reflects a well-performing company with strong revenue growth and positive technical indicators. Despite these strengths, challenges in cash flow management and lack of dividend yield slightly lower its overall attractiveness. The technical momentum and reasonable valuation support a moderately positive outlook.

Positive Factors

Product and Market Expansion

Management reiterated key growth drivers, including AI server/networking business momentum and product portfolio expansion.

Strategic Acquisitions

Consolidation of Auto-Kabel Group deal is on track to boost FIT's topline growth in future fiscal years.

Valuation

The stock now trades at an attractive valuation compared to expected EPS growth.

Negative Factors

Financial Performance

FIT Hon Teng's first quarter results were below expectations due to lower gross profit margins and foreign exchange headwinds.

Macroeconomic Challenges

Revenue guidance for smartphone and system products has been lowered due to macro uncertainties and US tariff impact.

Market Conditions

Near-term headwinds include impacts from tariffs and macroeconomic weakness, affecting the company's performance.

FIT Hon Teng Limited Business Overview & Revenue Model

Company Description

FIT Hon Teng Limited engages in the design, development, production, and sale of interconnect solutions and related products in Taiwan, People's Republic of China, the United States, Hong Kong, Malaysia, Singapore, and internationally. It operates through two segments, Intermediate Products and Consumer Products. The company offers cable components, including array of IO cables assemblies, wire harness, and power cords; connector components comprising backplane, high speed, input/output, and power connectors, as well as memory/edge cards, sockets, terminal blocks, and wire to board/board to board connectors. In addition, the company offers radio frequency antenna cable and module assemblies; wireless charging products and components; and accessories, such as headsets, speaker systems, and power and cable accessories. It also engages in research, development, and manufacture of batteries; manufacturing of metal processing machinery and equipment; and sale of smart home products. The company offers its products under the e Belkin, Linksys, Wemo, and Phyn brand names. It serves communications infrastructure, computers and consumer electronics, mobile and wireless devices, automotive, and industrial and medical industries. The company was formerly known as New Wing International Holdings Limited and changed its name to FIT Hon Teng Limited in June 2013. The company was incorporated in 2013 and is headquartered in New Taipei City, Taiwan. Foxconn FIT Hon Teng Limited is a subsidiary of Foxconn (Far East) Limited.

How the Company Makes Money

FIT Hon Teng Limited generates revenue through the sale of its interconnect solutions and electronic components. The company has a diversified revenue model that includes the production and sale of connectors, cables, and other related components used in various applications from consumer electronics to automotive industries. A significant portion of its revenue comes from long-term contracts and partnerships with major technology and electronics companies, which rely on FIT Hon Teng's products for their manufacturing processes. Additionally, the company's strong focus on research and development drives innovation, allowing it to introduce new products that meet evolving market demands, further contributing to its financial performance.

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 to ensure sustainable financial health.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.45B	4.20B	4.53B	4.49B	4.31B
Gross Profit	878.65M	807.14M	767.84M	673.01M	579.77M
EBITDA	520.05M	463.12M	534.66M	379.98M	374.65M
Net Income	153.73M	128.97M	169.62M	137.63M	42.51M
Balance Sheet
Total Assets	5.47B	5.09B	4.55B	5.01B	4.64B
Cash, Cash Equivalents and Short-Term Investments	1.18B	1.32B	979.87M	867.46M	899.41M
Total Debt	1.60B	1.44B	1.08B	1.32B	1.22B
Total Liabilities	2.99B	2.66B	2.20B	2.61B	2.45B
Stockholders Equity	2.47B	2.43B	2.35B	2.39B	2.19B
Cash Flow
Free Cash Flow	-132.81M	263.05M	425.01M	-156.31M	-251.77M
Operating Cash Flow	252.92M	573.63M	556.45M	84.90M	115.08M
Investing Cash Flow	-474.61M	-410.21M	-66.16M	-219.83M	-355.60M
Financing Cash Flow	58.82M	248.58M	-270.24M	119.75M	71.25M

FIT Hon Teng Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.62
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Positive. The current price of 2.62 is above the 20-day moving average (MA) of 2.56, above the 50-day MA of 2.35, and below the 200-day MA of 2.81, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 55.65 is Neutral, neither overbought nor oversold. The STOCH value of 49.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
6088	71 Outperform	HK$19.06B	15.49	6.27%	―	5.75%	18.75%
Sector *	63 Neutral	$34.70B	5.15	-11.38%	1.67%	5.54%	-17.15%
BYDIF	―	$10.05B	17.50	13.83%	0.45%	―	―
1478	65 Neutral	HK$13.54B	42.22	5.64%	0.14%	26.76%	237.96%
SNPTF	―	$10.70B	27.76	11.45%	0.08%	―	―
TRUHF	―	$479.96M	10.42	3.20%	87.07%	―	―
1415	66 Neutral	HK$24.55B	26.78	25.73%	―	168.87%	150.80%

FIT Hon Teng Limited Corporate Events

FIT Hon Teng Limited Updates Nomination Committee Terms

FIT Hon Teng Limited has amended the terms of reference for its Nomination Committee, effective from July 1, 2025. This update outlines the structure, membership, and operational procedures of the committee, emphasizing the importance of independent non-executive directors in its composition. The changes are designed to enhance governance practices and ensure compliance with regulatory requirements, potentially impacting the company’s corporate governance and stakeholder confidence.

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.

FIT Hon Teng Limited Successfully Concludes AGM with All Resolutions Passed

FIT Hon Teng Limited held its Annual General Meeting on June 20, 2025, where all proposed resolutions were approved by shareholders. Key resolutions included the re-election of directors, reappointment of auditors, and granting of mandates to directors for share issuance and repurchase. The approval of these resolutions reflects strong shareholder support and positions the company for continued strategic growth and operational efficiency.

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.

FIT Hon Teng Limited Announces 2025 Annual General Meeting

FIT Hon Teng Limited has announced its upcoming Annual General Meeting scheduled for June 20, 2025, in Taiwan. Key agenda items include the adoption of the 2024 financial statements, re-election of directors, re-appointment of auditors, and authorization for directors to manage share-related activities. These resolutions are crucial for maintaining the company’s governance and operational strategies, potentially impacting its market positioning and stakeholder relations.

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.

FIT Hon Teng Limited Announces Major Capital Injection to Boost Subsidiary Operations

FIT Hon Teng Limited has announced a significant capital injection of US$150 million into its subsidiary, Foxconn Interconnect Technology Singapore Pte. Ltd., which will subsequently invest the same amount into Fu Wing Interconnect Technology (Nghe An) Company Limited. This strategic move is expected to enhance the company’s operational capacity and strengthen its position in the interconnect technology sector, potentially benefiting stakeholders by expanding its market reach and technological capabilities.

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.

FIT Hon Teng Limited Announces Q1 2025 Financial Results

FIT Hon Teng Limited has released its unaudited financial results for the first quarter of 2025, reporting a revenue increase to US$1,102,912,000 from US$965,056,000 in the same period last year. Despite the revenue growth, net profit from continuing operations decreased to US$6,243,000 from US$10,201,000. The company advises caution as its financial performance can fluctuate significantly, and the results should not be seen as indicative of future performance.

FIT Hon Teng Limited Terminates Autotalks Share Sale

FIT Hon Teng Limited announced the termination of a transaction involving the sale of shares in Autotalks to K2 Acquisition for US$15 million due to a failure to obtain necessary regulatory approvals. This termination means the company will not realize the expected gain of US$5 million from the transaction, potentially impacting its financial projections and stakeholder expectations.