FIT Hon Teng Limited (6088) AI Stock Analysis

• Market Cap: HK$31.75B
• Dividend Yield: N/A
• Average Volume (3M): 93.46M
• Price to Earnings (P/E): 35.6
• Beta (1Y): 1.25
• Revenue Growth: 4.33%
• EPS Growth: -10.79%
• Country: HK
• Employees: 61,720
• Sector: Technology
• Sector Strength: 94
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.03
• Shares Outstanding: 7,294,739,000
• 10 Day Avg. Volume: 174,832,082
• 30 Day Avg. Volume: 93,462,843
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$5.48
• Price Target Upside: -8.21% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: HK$6.00 ▲(0.50% Upside)

The overall stock score reflects strong financial performance and positive technical momentum, offset by concerns over cash flow management and high valuation. The stock's overbought technical indicators suggest caution, while the high P/E ratio indicates potential overvaluation.

Positive Factors

Business Strategy

FIT Hon Teng's business transition in strategic cloud and auto segments accounted for 36% of sales, delivering strong growth of 28% and 115% respectively.

Earnings Growth

AI server order wins and AirPods capacity ramp-up are expected to drive earnings growth in the future.

Market Sentiment

The market reacted positively after FIT announced FY25-27E guidance and solid business outlook.

Negative Factors

Financial Performance

The weaker-than-expected results were mainly due to lower GPM and FX headwinds in 1Q.

Guidance Revision

Management lowered 2025 guidance on smartphone and System products due to macro uncertainties.

Macroeconomic Factors

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 (6088) is a leading global provider of interconnect solutions and electronics manufacturing services. The company operates primarily in the technology and consumer electronics sectors, offering a wide array of products, including connectors, cable assemblies, antennas, and power management devices. FIT Hon Teng serves a diverse range of industries, including telecommunications, automotive, and industrial applications, leveraging its extensive expertise in precision engineering and innovative design.

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: 5.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 5.97 is above the 20-day moving average (MA) of 3.17, above the 50-day MA of 2.73, and above the 200-day MA of 2.85, indicating a bullish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 93.31 is Negative, neither overbought nor oversold. The STOCH value of 90.98 is Negative, 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
2382	72 Outperform	$86.89B	29.57	11.45%	0.69%	18.80%	142.93%
0285	71 Outperform	$87.42B	18.90	13.83%	1.54%	34.21%	4.11%
1478	67 Neutral	HK$18.15B	35.56	9.13%	0.65%	17.21%	166.36%
1415	66 Neutral	HK$25.62B	28.13	25.73%	―	168.87%	150.80%
0732	62 Neutral	$3.77B	12.87	3.20%	8.13%	14.45%	15.04%
Sector *	61 Neutral	$36.30B	7.26	-7.27%	1.97%	7.74%	-7.92%
6088	54 Neutral	HK$31.75B	35.58	6.17%	―	4.33%	-10.79%

FIT Hon Teng Limited Corporate Events

FIT Hon Teng Limited Reports Revenue Growth but Decline in Profit for H1 2025

FIT Hon Teng Limited reported its interim financial results for the first half of 2025, showing a revenue increase of 11.5% year-on-year to $2.305 billion. Despite the revenue growth, the company’s profit decreased by 7.5% to $30 million, and basic earnings per share fell by 3.4%. The board did not declare an interim dividend for this period. These results highlight a challenging financial environment where increased revenue did not translate into higher profitability, potentially impacting investor sentiment and future strategic decisions.

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 Schedules Board Meeting for Interim Results and Dividend Consideration

FIT Hon Teng Limited has announced a board meeting scheduled for August 12, 2025, to discuss and approve the interim financial results for the first half of the year and consider the payment of an interim dividend. This meeting could impact the company’s financial strategy and shareholder returns, potentially influencing its market position and investor 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 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.