FIT Hon Teng (6088) H1 2025 earnings summary

Executive summary

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

• Net profit attributable to owners declined 7.5% year-over-year to $30 million, mainly due to higher income tax expenses and a decrease in gross margin.

• Gross profit rose 1.7% to $429 million, but gross margin fell from 20.4% to 18.6% due to product mix and exchange rates.

• Acquisition of Auto-Kabel Group in December 2024 significantly boosted auto mobility revenue by 102.3%.

• No interim dividend was declared for the period.

Financial highlights

• Operating profit rose 12.8% year-over-year to $105 million; operating margin slightly improved to 4.6%.

• Basic EPS for 1H25 was $0.44, down 4% year-over-year.

• Gross margin declined to 18.6% from 20.4% year-over-year.

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

• Total bank borrowings rose to $1,823 million; undrawn banking facilities of $1,605 million.

Outlook and guidance

• 2025 full-year revenue expected to grow 15% year-over-year.

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

• Segment guidance for 3Q25 and 2025: Smartphones +15%, Networking/Computing +5–15%, Auto Mobility 0±5%, System Products -5–15%.

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

• No interim dividend declared for the period.