FIT Hon Teng (6088) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2024, rose 15.9% year-over-year to US$2,067 million, with net profit reaching US$33 million versus a net loss of US$9 million in the prior year period.

• Gross profit margin improved to 20.4% from 15.9% due to a favorable product mix and reduced delivery expenses.

• The EV mobility segment saw a 217.0% revenue increase, driven by the acquisition of FIT Voltaira Group GmbH.

• The company remains focused on 5G/AIoT, acoustics, and EV mobility, expecting continued growth in these areas.

• No interim dividend was declared for the period.

Financial highlights

• Revenue: US$2,066.8 million, up 15.9% year-over-year.

• Gross profit: US$421.2 million, up 48.8% year-over-year.

• Operating profit: US$93.2 million, up 97.5% year-over-year.

• Net profit: US$32.5 million, compared to a net loss of US$8.95 million in the prior year.

• Basic and diluted EPS: US 0.46 cents per share, versus a loss of US 0.13 cents per share.

Outlook and guidance

• Anticipates the connector industry will benefit from AI-driven demand and recovery in consumer electronics.

• Expects networking and EV mobility to be key growth drivers, with continued investment in in-vehicle systems and autonomous driving components.

• Plans to expand acoustic product lines in Vietnam and India.

• Macroeconomic uncertainties may impact smartphone shipments, but this segment is expected to remain the main revenue contributor.