FIT HON TENG：24Q3业绩点评：AI需求强劲驱动网络基础设施营收高增，关注背板连接和光模块认证进展

Investment Rating - The report maintains a "Buy" rating for Hong Teng Precision (6088.HK) [1] Core Views - Strong demand for AI is driving high growth in network infrastructure revenue, with a focus on backplane connections and optical module certification progress [1] - The company expects stable revenue growth over the next three years, with a compound annual growth rate (CAGR) of 20% anticipated from 2024 to 2027 [1] - The automotive business revenue is below guidance due to overall industry weakness, while network infrastructure revenue is expected to maintain high double-digit growth [1] Summary by Sections Financial Performance - In Q3 2024, the company reported a net profit of $170 million, a year-on-year increase of 1% [1] - Revenue guidance for the full year aligns with market expectations, with a projected revenue growth of 8% [1] - The company’s gross profit margin improved to 21.7%, a decrease of 0.6 percentage points year-on-year [1] Business Segments - Revenue from network infrastructure grew by 65.98% year-on-year, while the automotive segment saw a decline of 11.15% [1] - The company anticipates that the revenue contribution from AI, EV, and audio segments will continue to grow, with expected contributions of 30% and 40% from network infrastructure [1] Future Outlook - The company is focusing on three main business areas: 5G AIoT, EV, and audio, which are expected to drive revenue growth [1] - New products in optical and power solutions are set to be delivered in Q4 2024, with significant sales growth anticipated [1] - The company is also expanding its electric vehicle charging station production in Saudi Arabia through a joint venture [1] Profitability and Valuation - The report forecasts net profits of$ 176 million, $271 million, and$ 376 million for 2024, 2025, and 2026 respectively, reflecting a strong growth trajectory [2] - The expected earnings per share (EPS) for 2024 is projected at $0.024, with a price-to-earnings (P/E) ratio of 12 [2][3]