Investment Rating - The report maintains a "BUY" rating for FIT Hon Teng with the target price currently under review [2][9][10]. Core Insights - The company is expected to benefit from multiple growth drivers in FY24/25, including AI server connectors, AirPods production ramp-up, and new opportunities in the electric vehicle (EV) sector [2][9]. - Management has indicated that revenue and gross profit margin (GPM) guidance for Q2 2024 is on track, with potential upside in the smartphone and networking segments [2][9]. - The report highlights a positive outlook for the iPhone replacement cycle and potential order wins in AI server connectivity, which could significantly enhance revenue in the networking segment [2][9]. Revenue and Profit Forecasts - Revenue is projected to grow from US$4,196 million in FY23 to US$4,715 million in FY24, representing a year-over-year growth of 12.4% [3][12]. - Net profit is expected to increase from US$132 million in FY23 to US$200 million in FY24, reflecting a growth rate of 51.5% [3][12]. - The earnings per share (EPS) is forecasted to rise from 2.81 cents in FY23 to 3.73 cents in FY24 [3][12]. Growth Drivers - Key growth drivers identified for 2025 include AirPods, AI server connectors/cables, and the auto business, particularly through a new joint venture in the EV charger market [2][9]. - The company is expected to ramp up production in Vietnam and India for AirPods, with management anticipating six additional production lines in India by 2025 [2][9]. Valuation Metrics - The company is trading at a price-to-earnings (P/E) ratio of 14.3x for FY24 and 10.8x for FY25, which is considered attractive given the expected EPS growth of 51% and 33% for FY24 and FY25, respectively [2][9][10]. - The report notes that the valuation remains appealing compared to the anticipated recovery in the AI server and smartphone markets [2][9].

Investment Rating - The report maintains a "Buy" rating for FIT Hon Teng with a target price of HK$2.42 [1][2] - The target price is based on a 12.5x P/E ratio for 2024, reflecting the company's growth prospects and historical valuation levels [1] Core Views - FIT Hon Teng's Q1 2024 performance met expectations, with revenue increasing by 12.0% YoY to USD 965 million and gross margin improving by 4.5 percentage points to 20.3% [1] - The company's TWS business for a major North American customer is expected to see incremental growth in H2 2024 and accelerate in 2025 [1] - The first Airpods production line in Vietnam began shipments in Q1 2024, with the business expected to contribute 5%-7% of total revenue in 2024 [1] - The company plans to add 6 more production lines in India by 2025, leading to a surge in capacity and revenue growth [1] - Management expects double-digit revenue growth for 2024, with gross margin stabilizing around 20% and operating profit increasing significantly [1] - The company aims to reduce its three major operating expenses to below 13% by 2025 (from 14.4% in 2023) [1] - Revenue from electric vehicles, next-gen 5G AIoT, and acoustic businesses is expected to reach 30% in 2024 and 40% in 2025 [1] Financial Performance - Q1 2024 revenue breakdown: Smartphones (USD 202 million, -10.2% YoY), Network Infrastructure (USD 114 million, +8.6% YoY), PC & Consumer Electronics (USD 180 million, +5.9% YoY), Electric Vehicles (USD 116 million, +205.3% YoY), and System Terminal Products (USD 296 million, +6.9% YoY) [6] - Net profit for Q1 2024 was USD 10.2 million, compared to a net loss of USD 9.3 million in Q1 2023 [6] - Forecasted EPS for 2024-2026: USD 0.025, USD 0.034, and USD 0.042, respectively [1][5] Strategic Initiatives - The company's "3+3" strategy focuses on electric vehicles, 5G AIoT, and acoustic products, with electric vehicle business expected to be a strong growth driver [7] - The company is well-positioned to benefit from the AI-driven data center construction boom, with products like EDSFF connectors, MCIO, MXIO, and PCIE 6.0-compatible cables expected to drive growth in the network infrastructure segment [6] Market Opportunities - The company is targeting opportunities in the USD 1.7 billion server connector and cable market, with plans to mass-produce AI-related products in H2 2024 [6] - The Airpods business is expected to capture over 30% market share in the future [1]

h 股 c r 票 a e s e R 研 y 究 tiu [ CTa ob mle_ pT ait nle y] Report: FIT Hon Teng (06088 HK) Gin Yu 余劲同 q E (852)2509 2113 公司报告： 鸿腾精密 (06088 HK) gin.yu@gtjas.com.hk 13 May 2024 1[T Qab 2le 0_S 2u 4m m Ra ery s] ults Were in Line with Expectations; 3+3 Strategy to Bring Continuous Increment, "Buy" tr 公 o p e 司 R  We maintain the investment rating as "Buy" and set TP to HK$2.42. We y [RTaabtlien_gR:a nk] Buy 报 n a forecast 2024-2026 EPS to be US$0.025/ US$0.034/ US$0.042, Maintained 告 p m respectively. Consider ...

2024 年 5 月 13 日 CMB 国际全球市场 | 股票研究 | 公司更新 FIT Hon Teng （ 6088 香港 ） 第 1 季度上线 ； AI 服务器 / 网络和 AirPods 在 2H24E 升级方面取得积极进展 目标价 2.40 港元 FIT Hon Teng 发布了可靠的第 1 季度业绩 ， 与其积极的利润预警和管理层保持一致。重申 （ 先前 TP 2.42 港元 ） 其 FY24E 指导 （ 年环比低两位数 ， GP 涨 / 跌 23.1% + 年环比两位数，OPM 5.5% ） 。使用 mgmt 托管结果后 NDR 调用后。5 月 10 日，我们认 现价 1.95 港元中国技术 为最近的股票调整主要是由于过去三个月上涨 101% 后的获利回吐，我们对其 2H24E 前景保 持乐观，这得益于 AirPods 的增长，Voltaira 汽车电子业务的整合以及 AI 服务器 / 网络产品的 亚历克斯 NG 订单获胜 （ 每个计算托盘的内容价值为 500 - 1, 000 美元 ） 。我们略微调整了 FY24 - 26E (852) 3900 0881 的预测，以反映更高的 GPM 和更好 ...

Investment Rating - FIT Hon Teng maintains a BUY rating with a new target price of HK$2 40 based on 11x FY24E P/E [2][13] Core View - FIT Hon Teng's 1Q24 results were in line with expectations driven by recovery in PC/server markets solid Voltaira business and strong Networking segment [2] - The company is expected to benefit from AirPods ramp-up integration of Voltaira auto electronics business and AI server/networking products in 2H24E [2] - Revenue and net profit are forecasted to rebound 12% and 52% YoY respectively in FY24E [2] - The stock's recent correction is attributed to profit-taking after a 101% rally in the past three months [2] Financial Performance - 1Q24 revenue reached US$965mn a 12% YoY increase while net profit was US$10 2mn compared to a loss of US$9 3mn in 1Q23 [2] - Gross profit margin improved by 450bps YoY to 20 3% due to a better product mix [2] - EV segment revenue surged 205% YoY driven by the Voltaira merger while Computing and Networking segments grew 6% and 9% YoY respectively [2] - FY24E revenue is projected at US$4 715mn with a 12 4% YoY growth and net profit is expected to reach US$199 6mn a 51 4% YoY increase [3][9] Segment Analysis - EV Mobility segment revenue jumped 205% YoY in 1Q24 due to the Voltaira merger [7] - Networking segment grew 9% YoY driven by AI demand and new CPU-related products [2] - Computing segment increased 6% YoY supported by market recovery [2] AI Server Opportunity - FIT Hon Teng expects US$500-1 000 content value per compute tray for AI servers in FY24E [2] - AI revenue share is projected to be 7-9% in FY24E up from 1% in FY23 [2] Valuation - The stock is trading at 8 9x/6 7x FY24/25E P/E which is considered attractive given multiple growth drivers [2][13] - The new target price of HK$2 40 is based on 11x FY24E P/E reflecting accelerated growth and profitability recovery [13] Growth Drivers - Key catalysts include AirPods shipments AI server product updates and continued revenue upside from auto business consolidation [13] - The company's "3+3 Strategy" is expected to drive accelerated growth and profitability recovery [13]

FIT Hon Teng Limited 鴻騰六零八八精密科技股份有限公司 （於開曼群島以鴻騰精密科技股份有限公司的名稱註冊成立的有限公司， 並以鴻騰六零八八精密科技股份有限公司於香港經營業務） 股份代號: 6088 二零二三年年度報告 VOLTAIRA | --- | --- | |-------|------------------| | | | | | | | | | | | 目錄 | | | | | | 公司資料 | | | 財務摘要 | | | 主席報告 | | | 管理層討論及分析 | | | 董事及高級管理層 | | | 董事會報告 | | | 企業管治報告 | | | 獨立核數師報告 | | | 綜合收入表 | | | 綜合全面收入表 | | | 綜合資產負債表 | | | 綜合權益變動表 | | | 綜合現金流量表 | | | 綜合財務報表附註 | | | 釋義 | | | | 2 4 5 8 17 24 50 71 77 78 79 81 83 85 210 公司資料 本公司之法定名稱 鴻騰六零八八精密科技股份有限公司（於開曼群島以鴻騰精密科技股份有限公司的名稱註冊成立的有限公司，並以鴻騰 ...

Investment Rating - The report maintains a BUY rating for FIT Hon Teng with a target price (TP) of HK$ 2.42, indicating a potential upside of 12.6% from the current price of HK$ 2.15 [5][13]. Core Insights - Recent stock price corrections are viewed as overdone, primarily driven by investor concerns regarding Apple's TWS order allocation. Management has confirmed that the first production line of AirPods in Vietnam began shipments in February 2024, expected to contribute 5-7% of sales in FY24E. By 2025, additional production lines will be added in India, positioning FIT and Luxshare as the two largest AirPods suppliers with a projected market share of 30% and 70% respectively [2][3]. - The management has reiterated a solid outlook for 2024, projecting high-teens revenue growth, over 15% gross profit (GP) and operating profit (OP) growth year-on-year, driven by AirPods, AI server connectors, and the auto business [3][4]. Financial Summary - Revenue is projected to grow from US$ 4,196 million in FY23A to US$ 4,715 million in FY24E, reflecting a year-on-year growth of 12.4%. Net profit is expected to increase significantly from US$ 129.6 million in FY23A to US$ 201.2 million in FY24E, representing a growth of 55.3% [4][11]. - The earnings summary indicates a consistent improvement in profitability metrics, with gross profit margins expected to rise from 19% in FY23A to 20% in FY24E, and operating profit margins increasing from 6.3% to 7.5% over the same period [11][18]. Growth Drivers - Key growth drivers identified include the AirPods production ramp-up, AI server product launches, and consolidation in the auto business, with expected contributions of 5-7% from AirPods, 7-9% from AI server products, and 8% from the auto business in FY24E [3][4]. - The report highlights that the recent share price correction presents a buying opportunity, with the stock trading at attractive valuation multiples of 9.7x and 7.6x for FY24E and FY25E P/E respectively, compared to a historical average of 15x [3][13].

Investment Rating - The report maintains a "Buy" rating for FIT Hon Teng with a target price of HKD 1.65, based on a 9.0x 2024 P/E ratio [2][3][7] Core Views - FIT Hon Teng's 2023 financial performance met expectations, with revenue declining 7.4% YoY to USD 4.196 billion and net profit decreasing 23.5% YoY to USD 130 million [2][8] - The company's "3+3" strategy, focusing on electric vehicles (EV), 5G AIoT, and acoustic products, is expected to drive future growth [2][9] - EV business is seen as a major growth driver, with revenue contribution from EV, 5G AIoT, and acoustic products expected to reach 30% in 2024 and 40% in 2025 [2][9] - The acquisition of SWH (renamed FIT Volaira) is expected to accelerate the company's expansion in the EV market, particularly in Europe [2][10] Financial Performance - 2023 revenue: USD 4.196 billion (-7.4% YoY) [2][8] - 2023 net profit: USD 130 million (-23.5% YoY) [2][8] - 2023 gross margin: 19.2% (+2.3 ppts YoY) [8] - 2023 R&D expenses: 7.3% of revenue (+0.8 ppts YoY) [8] - 2023 administrative expenses: 4.5% of revenue (+1.6 ppts YoY) [8] Future Projections - 2024-2026 EPS forecast: USD 0.023 / USD 0.029 / USD 0.035 [2][7] - 2024-2026 revenue forecast: USD 4.673 billion / USD 5.074 billion / USD 5.472 billion [5] - 2024-2026 net profit forecast: USD 166 million / USD 208 million / USD 245 million [5] Business Strategy - The company is leveraging its global presence and MIH platform to expand its EV business, with a focus on high-voltage connectors and intelligent vehicle systems [9][10] - The acoustic business is benefiting from the company's position as a supplier of TWS products to North American customers [9] - The 5G AIoT and data center markets are expected to drive demand for high-speed connectors, benefiting the company's copper and optical-based products [9] Market Position - FIT Hon Teng is positioned to benefit from the growing EV, 5G AIoT, and data center markets, with a diversified product portfolio and strong R&D capabilities [9][10] - The company's acquisition of FIT Volaira enhances its position in the automotive sector, particularly in Europe [10]

M N 26 Mar 2024 CMB International Global Markets | Equity Research | Company Update FIT Hon Teng (6088 HK) NDR takeaways: Opportunities in US$1.7bn server connector/cable market; Lift TP to HK$2.42 Target Price HK$2.42 Maintain BUY and raise TP to HK$2.42 to reflect stronger demand of next-gen high-speed connectivity in AI servers in FY24/25E, backed by MCIO connectors (Previous TP HK$2.21) /cables and high-speed I/O products, recent launch of 224G high-speed Up/Downside 19.3% products at DesignCon (link), ...

h 股 c r a 票 e s e R 研 y [Table_Title] Gin Yu 余劲同 tiu Company Report: FIT Hon Teng (06088 HK) 究 q (852)2509 2113 E 公司报告： 鸿腾精密 (06088 HK) gin.yu@gtjas.com.hk 14 March 2024 R[Taebsleu_lStusm mWarey]r e in Line with Expectations, While Layout in EV Mobility to Bring Huge Expandable Market Space, "Buy" tr 公 o p  We maintain the investment rating as "Buy" but set TP to HK$1.65. We e [RTaabtlien_gR:a nk] Buy 司 R forecast FY24-FY26 EPS to be US$0.023/ US$0.029/ US$0.035, y Maintained 报 n respectively. Considering ...