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 US$2,305 million, driven by growth in cloud, consumer interconnects, and auto mobility segments.

• Net profit decreased by 7.5% to US$30 million due to higher income tax expenses and a decrease in gross margin.

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

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

• No interim dividend was declared for the period.

Financial highlights

• Operating profit increased 12.8% to US$105 million; operating margin slightly improved to 4.6%.

• Earnings per share were US 0.44 cents, down from 0.46 cents year-over-year.

• Cash and cash equivalents stood at US$1,101 million as of June 30, 2025.

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

• Total bank borrowings rose to US$1,823 million; undrawn banking facilities of US$1.6 billion.

Outlook and guidance

• Anticipates continued growth in cloud and auto mobility, leveraging AI and EV trends.

• Auto mobility segment to benefit from Auto-Kabel acquisition and EV market expansion.

• Expects smartphone market to remain a major revenue source despite global shipment uncertainties.

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

• Focus remains on 5G, AIoT, acoustics, and auto mobility end markets.