FIT HON TENG (06088) Maintains "Buy" Rating as Company Continues to Expand AI Product Portfolio

Stock News
Oct 14

A research report maintains a "Buy" rating for FIT HON TENG (06088), projecting the company's revenue for 2025-2027 at $47.8 billion, $61.5 billion, and $75.3 billion respectively, with net profit attributable to shareholders of $170 million, $300 million, and $450 million respectively, corresponding to PE ratios of 33x, 18x, and 12x. The company is a leading global manufacturer in the precision components sector, with Foxconn as its actual controller.

The company released its interim report for 2025, showing revenue of $23.05 billion for the first half of 2025, representing an 11.5% year-on-year increase. Profit attributable to owners of the company reached $31.51 million, down 3.1% year-on-year.

The company has deepened its "3+3" strategic layout, with AI and electric vehicle businesses continuing to contribute significantly to revenue growth in the first half of 2025, driving overall revenue expansion. AI development has spurred infrastructure construction for computing power, and the company focuses on connectivity, power supply, and liquid cooling systems to deepen its AI product portfolio, continuously expanding its addressable market space. The company is well-positioned to benefit from AI development, and currently, the AI business's contribution to company performance has begun to materialize and is expected to strengthen further in the future.

As business scale expands and quality and efficiency improvements continue to advance, the company's profitability is expected to improve in the future.

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