FIT Hon Teng (6088) Q3 2024 earnings summary

Executive summary

• Achieved 1% year-over-year revenue growth in 3Q24, with net income rising 24% and gross profit declining 2%.

• Year-to-date (YTD) revenue up 10%, gross profit up 24%, and net profit up 120% compared to the same period last year.

• Basic EPS increased 22% year-over-year for 3Q24 and 119% YTD.

• Unaudited consolidated financial results for the nine months ended September 30, 2024, were released to comply with disclosure requirements in both Hong Kong and Taiwan.

• Results are based on management accounts and may be subject to adjustments after internal review.

Financial highlights

• 3Q24 revenue: $1,174M (+1% YoY); gross profit: $255M (-2% YoY); net profit: $68M (+24% YoY).

• Revenue for the nine months ended September 30, 2024, was US$3,241.2 million, up from US$2,948.8 million year-over-year.

• Net profit from continuing operations for the nine months was US$100.7 million, more than double the US$46.2 million in the prior year period.

• Total comprehensive income for the nine months reached US$108.5 million, compared to a loss of US$21.3 million in the same period last year.

• Gross margin for 3Q24 at 21.7% (down 60bps YoY); net profit margin at 5.8% (up 110bps YoY).

Outlook and guidance

• 2024 full-year guidance: revenue growth of 5–15% YoY, gross profit growth of 5–15%, and operating profit growth of 0–5%.

• 3-year CAGR revenue target of 20%, gross margin target of 22%, and operating profit margin target of 8% by 2027.

• Segment guidance for 4Q24 and 2024 provided, with varying growth expectations across business lines.