FIT Hon Teng (6088) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2025, increased by 11.5% year-over-year to $2,305 million, driven by growth in cloud, consumer interconnects, and auto mobility segments, with Q2 revenue up 9% to $1.2B.

• Net profit for H1 2025 was $30 million, down 7.5% year-over-year, mainly due to higher income tax expenses and a decrease in gross margin.

• Gross profit increased 1.7% to $429 million, but gross margin narrowed from 20.4% to 18.6% due to product mix and FX impacts.

• Acquisition of Auto-Kabel Group in December 2024 significantly boosted auto mobility revenue by over 100%.

• No interim dividend was declared for the period.

Financial highlights

• Q2 2025 revenue: $1,202M (+9% YoY); gross profit: $214M (-5% YoY); net income: $24M (+4% YoY).

• H1 2025 revenue: $2,305M (+11.5% YoY); gross profit: $429M (+1.7% YoY); operating profit: $105M (+12.8% YoY).

• Gross margin declined to 18.6% from 20.4% YoY; net profit margin fell to 1.3% from 1.6%.

• Basic EPS for H1 2025 was US0.44 cents, down 3.4% YoY.

• Capital expenditures increased to $275 million, mainly for new production complexes and R&D facilities.

Outlook and guidance

• AI-driven demand in cloud and consumer interconnects, and EV trends in auto mobility, are expected to drive future growth.

• Full-year 2025 revenue is guided to rise 15% YoY, with segment growth led by smartphones, cloud/datacenter, and auto mobility.

• Management remains cautious on smartphones and system products due to market uncertainties and supply chain issues.

• No interim dividend declared for the period.