FIT Hon Teng (6088) H2 2024 earnings summary

Executive summary

• Revenue grew 6.1% year-over-year to $4,451M in 2024, with net income up 19.1% to $154M.

• Gross profit margin improved to 19.7% from 19.2%, driven by product mix optimization.

• Operating profit declined 14% year-over-year, while profit before tax rose 23%.

• Major acquisitions included Auto-Kabel Group and FIT Voltaira Group GmbH, expanding automotive and EV capabilities.

• No final dividend declared for 2024.

Financial highlights

• Revenue: $4,451M in 2024 vs $4,196M in 2023 (+6.1% YoY); Net income: $154M in 2024 vs $129M in 2023 (+19.1% YoY).

• Gross profit: $879M in 2024 vs $807M in 2023 (+8.9% YoY); Gross margin: 19.7%.

• Basic EPS: $2.17 in 2024 vs $1.82 in 2023 (+19.2% YoY).

• Operating expenses rose 17% year-over-year to $703M.

• Operating profit: $327M (up 24.3% YoY); Operating margin: 7.3%.

Outlook and guidance

• 2025 revenue guidance: +15% YoY.

• Gross profit expected to grow 5–15% YoY in 2025.

• Operating profit guidance: flat to +5% YoY for 2025.

• AI-driven demand expected to boost networking and data center products.

• Three-year CAGR revenue and gross margin both projected in the low twenties percentile; operating profit margin expected in high single digits by 2027.