Jingu Financial News | China Securities Co., Ltd. issued research reports indicating that Fit Hon Teng (06088) is a global leading manufacturer in the precision zero component field, with Hon Hai as the actual controller of the company. The development of AI is driving the construction of computing power infrastructure, and the company's layout in high-speed connection systems covers areas such as copper connections, optical modules, etc., and is expected to benefit fully. The company's AI-related products applied on compute boards, such as CPU sockets, MCIO connectors, have significantly increased revenue and driven performance growth, with the company's AI revenue in the third quarter growing threefold year-on-year. New products like power busbars, CDU liquid-cooled connectors are expected to see an increase in volume. At the same time, the company continues to promote Tray-to-tray connection products, 1.6T optical module products, and other product line layouts to further explore business opportunities in the market. Regarding GPU sockets, the company stated at a performance exchange meeting that it has indeed observed the demand for GPU sockets and is leading the layout in the GPU socket field.

Based on the '3+3' strategy, the company actively lays out three key industries: 5G AIoT, electric vehicles, and Audio information, deepening its leading advantages. By 2023, 25% of the company's revenue comes from the '3+3' layout, with plans to reach 30% and 40% in 2024 and 2025, respectively. The development of AI is driving the construction of computing power infrastructure, and the connection system architecture is upgrading to higher speeds. The company's layout in high-speed connection systems covers areas such as copper connections, optical modules, etc., and is expected to benefit fully. With the expansion of business scale and continuous improvement in quality and efficiency, the company's profitability is expected to increase in the future.

The bank expects the company's revenue in 2024, 2025, and 2026 to be $4.55 billion, $5.529 billion, and $6.64 billion, respectively, with net income attributable to the parent company of $0.159 billion, $0.245 billion, and $0.346 billion, corresponding to PE ratios of 20x, 13x, and 9x, maintaining a 'buy' rating.