FIT HON TENG：2Q24 在线 ； 电源母线和液冷订单的乐观指导获胜

Investment Rating - The report maintains a "Buy" rating for FIT Hon Teng with a new target price of HK$4.25, reflecting an attractive risk-reward profile based on a 13x FY25E P/E ratio [11][12]. Core Insights - FIT Hon Teng reported strong Q2 2024 results, with revenue of US$1.102 billion, a year-on-year increase of 20%, and a net profit of US$22.3 million, significantly up from US$0.35 million in Q2 2023 [1][6]. - The company is optimistic about its AI server product line, with new power bus and liquid cooling CDU products passing customer certification, expected to contribute 1-3% to FY24E sales [1][11]. - The network business revenue is projected to grow at a high double-digit rate year-on-year, driven by robust demand in AI applications [1][11]. Financial Performance Summary - Revenue for FY24E is estimated at US$4.677 billion, with a year-on-year growth of 11.5$183 million, reflecting a 41.8% increase [9][10]. - Gross profit margin (GPM) is expected to stabilize around 21% for FY24E and FY25E, with operating profit margin (OPM) targeted at 7% for FY24E [8][10]. - The company anticipates a rebound in revenue and net profit for FY24E, with expected growth rates of 12% and 42%, respectively [1][11]. Segment Performance - The automotive segment saw a remarkable year-on-year growth of 231%, primarily due to the integration of Voltaira [1][6]. - The network segment experienced a 29% increase in demand, attributed to the growth in AI applications [1][6]. - The smartphone segment's performance was better than expected, aided by improved shipping strategies with major clients [1][6]. Earnings Revisions - FY25E earnings per share (EPS) estimates have been revised upwards by 13-23%, reflecting stronger performance expectations [2][9]. - The report highlights a significant increase in EPS for FY24E to 2.58 cents and for FY25E to 4.20 cents, indicating a positive outlook for profitability [9][10].