FIT HON TENG(06088.HK):1Q2024 RESULTS WERE IN LINE WITH EXPECTATIONS; 3+3 STRATEGY TO BRING CONTINUOUS INCREMENT "BUY"
FIT HON TENG(06088.HK):1Q2024 RESULTS WERE IN LINE WITH EXPECTATIONS; 3+3 STRATEGY TO BRING CONTINUOUS INCREMENT "BUY"
We maintain the investment rating as "Buy" and set TP to HK$2.42. We forecast 2024-2026 EPS to be US$0.025/ US$0.034/ US$0.042, respectively. Considering future performance growth rate and historical valuation level, we give 12.5x 2024 PER, corresponding to TP of HK$2.42 and maintain the investment rating as "Buy".
我們將投資評級維持爲 “買入”，並將目標價設定爲2.42港元。我們預計2024-2026年的每股收益將分別爲0.025美元/0.034美元/0.042美元。考慮到未來的業績增長率和歷史估值水平，我們給出12.5倍的2024年市盈率，相當於2.42港元的目標價，並將投資評級維持爲 “買入”。
FIT Hon Teng's (the "Company") 1Q2024 results were in line with our expectations. Revenue in 1Q2024 increased 12.0% yoy to US$965 million. The gross profit margin of the Company increased by 4.5 ppts yoy to 20.3%, while gross profit increased by 44% yoy. Shareholders' net profit reached US$10 million.
FIT Hon Teng（“公司”）的 1Q2024 業績符合我們的預期。1Q2024 的收入同比增長12.0％，達到9.65億美元。公司的毛利率同比增長4.5個百分點至20.3％，而毛利同比增長44％。股東的淨利潤達到1,000萬美元。
TWS business for major customers in North America is expected to ramp up in 2H2024, and accelerate in 2025. The Company's first Airpods production line is in Vietnam, and has already started shipping in 1Q2024; the corresponding business is expected to account for 5%-7% of the Company's total revenue. The Company is planning to add six more production lines in India in 2025. Thus, we expect production capacity to surge and the corresponding revenue to grow in 2025. We expect the Company's share in Airpods will exceed 30% in the future.
TWS 面向北美主要客戶的業務預計將在 2H2024 中增長，並在 2025 年加速。該公司的第一條Airpods生產線位於越南，並已開始在 1Q2024 中發貨；相應的業務預計將佔公司總收入的5％-7％。該公司計劃於2025年在印度再增加六條生產線。因此，我們預計2025年產能將激增，相應的收入將增長。我們預計，未來該公司在Airpods中的份額將超過30％。
We expect the Company's earnings to recover continuously. The management expects the 2024 full year revenue to achieve a double-digit growth, while gross margin to stabilize at around 20%, and operating profit to increase significantly. The Company also wishes to control its major three operating expenses to lower than 13% in 2025 (14.4% in 2023). The Company expects that revenue mix from EV Mobility, new Generation 5G AIoT and Audio will reach 30% in 2024 and 40% in 2025. Promoted by continuous production line expansion of Airpods, synergy from acquisition of FIT Voltaira, as well as opportunities brought by AI, we expect the Company's revenue to achieve a double-digit growth in 2024-2026, while earnings to grow faster.
我們預計該公司的收益將持續恢復。管理層預計，2024年全年收入將實現兩位數的增長，毛利率將穩定在20％左右，營業利潤將大幅增長。該公司還希望在2025年將其三大運營支出控制在13％以下（2023年爲14.4％）。該公司預計，電動汽車出行、新一代5G AIoT和音頻的收入組合將在2024年達到30％，在2025年達到40％。在Airpods產線的持續擴張、收購FIT Voltaira的協同作用以及人工智能帶來的機遇的推動下，我們預計該公司的收入將在2024-2026年實現兩位數的增長，同時收益將更快地增長。
Catalysts: Share in Airpods business may exceed market expectations; quicker-than-expected expansion in AI market.
催化劑：Airpods業務的份額可能超出市場預期；人工智能市場的擴張速度快於預期。
Risks: More intense than expected market competition of EV mobility business; less than expected penetration of TWS products; less than expected demand for servers and storage.
風險：電動汽車出行業務的市場競爭比預期的更激烈；TWS產品的滲透率低於預期；對服務器和存儲的需求低於預期。
譯文內容由第三人軟體翻譯。