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".
我们将投资评级维持为 “买入”，并将目标价设定为2.42港元。我们预计2024-2026年的每股收益将分别为0.025美元/0.034美元/0.042美元。考虑到未来的业绩增长率和历史估值水平，我们给出12.5倍的2024年市盈率，相当于2.42港元的目标价，并将投资评级维持为 “买入”。
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 业绩符合我们的预期。1Q2024 的收入同比增长12.0％，达到9.65亿美元。公司的毛利率同比增长4.5个百分点至20.3％，而毛利同比增长44％。股东的净利润达到1,000万美元。
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 面向北美主要客户的业务预计将在 2H2024 中增长，并在 2025 年加速。该公司的第一条Airpods生产线位于越南，并已开始在 1Q2024 中发货；相应的业务预计将占公司总收入的5％-7％。该公司计划于2025年在印度再增加六条生产线。因此，我们预计2025年产能将激增，相应的收入将增长。我们预计，未来该公司在Airpods中的份额将超过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.
我们预计该公司的收益将持续恢复。管理层预计，2024年全年收入将实现两位数的增长，毛利率将稳定在20％左右，营业利润将大幅增长。该公司还希望在2025年将其三大运营支出控制在13％以下（2023年为14.4％）。该公司预计，电动汽车出行、新一代5G AIoT和音频的收入组合将在2024年达到30％，在2025年达到40％。在Airpods产线的持续扩张、收购FIT Voltaira的协同作用以及人工智能带来的机遇的推动下，我们预计该公司的收入将在2024-2026年实现两位数的增长，同时收益将更快地增长。
Catalysts: Share in Airpods business may exceed market expectations; quicker-than-expected expansion in AI market.
催化剂：Airpods业务的份额可能超出市场预期；人工智能市场的扩张速度快于预期。
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.
风险：电动汽车出行业务的市场竞争比预期的更激烈；TWS产品的渗透率低于预期；对服务器和存储的需求低于预期。
译文内容由第三方软件翻译。