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FIT Hon Teng Limited (HK:6088)
:6088
Hong Kong Market

FIT Hon Teng Limited (6088) AI Stock Analysis

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HK

FIT Hon Teng Limited

(6088)

Rating:71Outperform
Price Target:
HK$3.00
▲(22.95%Upside)
FIT Hon Teng Limited's overall stock score is driven primarily by strong financial performance and positive technical indicators. The company's valuation is fair, but the absence of a dividend yield and concerns about cash flow management slightly temper the overall outlook.
Positive Factors
Growth Drivers
AI server products and auto business are expected to be key growth drivers.
Revenue Growth
FIT is on track to deliver high single-digit revenue growth with over 20% gross profit margin and 4.5% operating profit margin.
Strategic Deals
Consolidation of Auto-Kabel Group deal is on track to boost FIT's topline growth.
Negative Factors
Financial Performance
FIT Hon Teng's 1Q25 results were below expectations due to lower gross profit margins and foreign exchange headwinds.
Guidance Revision
Management has lowered the 2025 guidance for smartphone and system products due to macro uncertainties.
Market Challenges
Near-term headwinds include impacts from tariffs and macroeconomic weakness, affecting the company's performance.

FIT Hon Teng Limited (6088) vs. iShares MSCI Hong Kong ETF (EWH)

FIT Hon Teng Limited Business Overview & Revenue Model

Company DescriptionFIT 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 MoneyFIT 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
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
75
Positive
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
70
Positive
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
60
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.45B4.20B4.53B4.49B4.31B
Gross Profit878.65M807.14M767.84M673.01M579.77M
EBITDA520.05M463.12M534.66M379.98M374.65M
Net Income153.73M128.97M169.62M137.63M42.51M
Balance Sheet
Total Assets5.47B5.09B4.55B5.01B4.64B
Cash, Cash Equivalents and Short-Term Investments1.18B1.32B979.87M867.46M899.41M
Total Debt1.60B1.44B1.08B1.32B1.22B
Total Liabilities2.99B2.66B2.20B2.61B2.45B
Stockholders Equity2.47B2.43B2.35B2.39B2.19B
Cash Flow
Free Cash Flow-132.81M263.05M425.01M-156.31M-251.77M
Operating Cash Flow252.92M573.63M556.45M84.90M115.08M
Investing Cash Flow-474.61M-410.21M-66.16M-219.83M-355.60M
Financing Cash Flow58.82M248.58M-270.24M119.75M71.25M

FIT Hon Teng Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.44
Price Trends
50DMA
2.19
Positive
100DMA
2.53
Negative
200DMA
2.76
Negative
Market Momentum
MACD
0.06
Negative
RSI
57.16
Neutral
STOCH
61.66
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 2.44 is above the 20-day moving average (MA) of 2.37, above the 50-day MA of 2.19, and below the 200-day MA of 2.76, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 57.16 is Neutral, neither overbought nor oversold. The STOCH value of 61.66 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

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
HK$17.86B14.436.27%5.75%18.75%
69
Neutral
¥228.59B14.337.64%2.71%9.13%8.49%
$9.31B15.7413.83%1.89%
65
Neutral
HK$10.28B33.845.64%1.17%26.76%237.96%
$9.84B22.6811.45%0.87%
$432.75M10.423.20%1.28%
66
Neutral
HK$25.15B27.0625.73%168.87%150.80%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:6088
FIT Hon Teng Limited
2.44
-0.61
-20.00%
BYDIF
BYD Electronic (International) Co
4.14
-0.27
-6.12%
HK:1478
Q Technology (Group) Co
8.57
4.81
127.93%
SNPTF
Sunny Optical Technology (Group) Co
7.82
2.33
42.44%
TRUHF
Truly International Holdings
0.13
0.05
62.50%
HK:1415
Cowell e Holdings Inc.
29.15
6.40
28.13%

FIT Hon Teng Limited Corporate Events

FIT Hon Teng Limited Updates Nomination Committee Terms
Jun 30, 2025

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
Jun 20, 2025

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
May 21, 2025

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
May 13, 2025

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
May 8, 2025

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
May 7, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 04, 2025