FIT Hon Teng Limited (6088) AI Stock Analysis

• Market Cap: HK$40.45B
• Dividend Yield: N/A
• Average Volume (3M): 143.48M
• Price to Earnings (P/E): 34.0
• Beta (1Y): 1.50
• Revenue Growth: 4.33%
• EPS Growth: -10.79%
• Country: HK
• Employees: 61,720
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.03
• Shares Outstanding: 7,303,739,000
• 10 Day Avg. Volume: 84,182,669
• 30 Day Avg. Volume: 143,484,253
• PEG Ratio: 1.13
• Price to Book (P/B): 1.35
• Price to Sales (P/S): 0.75
• P/FCF Ratio: -25.06
• 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$6.86
• Price Target Upside: 20.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: HK$5.00 ▼(-12.28% Downside)

The overall stock score of 56 reflects strong financial performance with robust revenue growth and profitability, but is offset by poor cash flow management and bearish technical indicators. The high P/E ratio and lack of dividend yield further weigh on the stock's attractiveness.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates strong market demand and effective sales strategies, which can drive long-term business expansion.

Stable Profitability

Stable profitability through consistent gross margins supports sustainable business operations and provides a cushion for future investments.

Robust Balance Sheet

A strong balance sheet with healthy equity and manageable leverage enhances financial stability and supports strategic growth initiatives.

Negative Factors

Cash Flow Management

Lack of free cash flow in 2024 raises concerns about liquidity and the company's ability to fund operations and growth without external financing.

Earnings Decline

A decline in EPS growth suggests potential challenges in profitability, which could impact investor confidence and the company's valuation over time.

Operational Efficiency

Moderate EBIT margins indicate potential inefficiencies in operations, which may limit profitability and competitiveness if not addressed.

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 electronic components and connectivity solutions, with key revenue streams coming from its diverse product offerings that cater to various industries, including telecommunications, consumer electronics, and automotive sectors. The company benefits from long-term relationships with major clients, providing customized solutions that enhance customer retention and ensure consistent demand. Additionally, FIT Hon Teng capitalizes on technological advancements and increasing market demand for high-speed connectivity, driving growth in its core product lines. Strategic partnerships with leading technology firms further bolster its market presence and contribute to revenue growth.

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 due to the absence of free cash flow in 2024, which could impact liquidity and future growth.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.69B	4.45B	4.20B	4.53B	4.49B	4.31B
Gross Profit	885.97M	878.65M	807.14M	767.84M	673.01M	579.77M
EBITDA	459.76M	520.05M	463.12M	475.62M	350.80M	374.65M
Net Income	152.72M	153.73M	128.97M	169.62M	137.63M	42.51M
Balance Sheet
Total Assets	5.74B	5.47B	5.09B	4.55B	5.01B	4.64B
Cash, Cash Equivalents and Short-Term Investments	1.30B	1.18B	1.32B	979.87M	867.46M	899.41M
Total Debt	1.91B	1.60B	1.44B	1.08B	1.32B	1.22B
Total Liabilities	3.18B	2.99B	2.66B	2.20B	2.61B	2.45B
Stockholders Equity	2.55B	2.47B	2.43B	2.35B	2.39B	2.19B
Cash Flow
Free Cash Flow	129.94M	-132.81M	263.05M	425.01M	-156.31M	-251.77M
Operating Cash Flow	294.64M	252.92M	573.63M	556.45M	84.90M	115.08M
Investing Cash Flow	-172.44M	-474.61M	-410.21M	-66.16M	-219.83M	-355.60M
Financing Cash Flow	-38.83M	58.82M	248.58M	-270.24M	119.75M	71.25M

FIT Hon Teng Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 5.7 is above the 20-day moving average (MA) of 5.33, above the 50-day MA of 5.42, and above the 200-day MA of 3.78, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 56.35 is Neutral, neither overbought nor oversold. The STOCH value of 62.41 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
1415	71 Outperform	HK$24.20B	18.13	33.34%	―	184.87%	276.87%
0732	64 Neutral	HK$3.30B	12.76	2.87%	9.26%	2.59%	0.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2382	61 Neutral	HK$71.11B	20.09	13.28%	0.82%	7.53%	87.77%
0285	60 Neutral	$75.57B	15.71	14.34%	1.84%	17.48%	10.65%
6088	56 Neutral	HK$40.45B	33.97	6.17%	―	4.33%	-10.79%
1478	51 Neutral	HK$10.10B	19.44	9.13%	2.94%	17.21%	166.36%

FIT Hon Teng Limited Corporate Events

FIT Hon Teng Limited Delays Circular Dispatch for Framework Agreements

FIT Hon Teng Limited announced a delay in the dispatch of a circular related to framework agreements and transactions, initially scheduled for December 5, 2025, now expected by December 16, 2025. This delay indicates the company’s need for additional time to prepare and finalize relevant information, potentially impacting shareholder communication and transaction timelines.

FIT Hon Teng Renews Key Framework Agreements with Hon Hai Group

FIT Hon Teng Limited has announced the renewal of several framework agreements with Hon Hai Group, effective from January 1, 2026, to December 31, 2026. These agreements cover a range of transactions, including sales, purchases, logistics, and services, ensuring continued collaboration between the two entities. This renewal signifies a sustained partnership, potentially enhancing operational efficiency and market positioning for FIT Hon Teng, while also maintaining supply chain stability for stakeholders.

FIT Hon Teng Limited Announces Board and Committee Structure

FIT Hon Teng Limited has announced the composition of its board of directors and the roles within its four key committees. This structure, including executive, non-executive, and independent directors, aims to strengthen corporate governance and enhance strategic decision-making, potentially impacting the company’s operational efficiency and stakeholder confidence.

FIT Hon Teng Limited Reports Positive Financial Growth for Nine Months Ending September 2025

FIT Hon Teng Limited has released its unaudited financial results for the nine months ending September 30, 2025, showing an increase in both current and non-current assets compared to the previous year. The company also reported a rise in revenue and net profit from continuing operations, indicating a positive financial trajectory. However, stakeholders are advised to exercise caution as the results are unaudited and may fluctuate in future periods.