HK Stock Market Move | FIT HON TENG (06088) has risen by over 4% in the afternoon, and the company's net profit margin in the third quarter has significantly improved. Institutions are optimistic about the continuous growth of future performance.

FIT HON TENG (06088) rose more than 4% in the afternoon, with a rise of 4.56% as of the time of writing, closing at 2.98 Hong Kong dollars, with a turnover of 1.25 billion Hong Kong dollars. On the news front, FIT HON TENG recently announced its performance, with a year-on-year increase of 1% and 24% in revenue and net profit for the third quarter; as of the first three quarters of 2024, the company's revenue and net profit increased by 10% and 119% respectively year-on-year. The company's net profit margin in the third quarter significantly increased to 5.8%, mainly due to the high profit margins of the AI server business, effective cost control, and improved operating efficiency. The bank stated that looking ahead to 4Q24 and FY25, the volume of NVIDIA GB200 AI server business, the acquisition and consolidation of the Auto-Kabel Group for automotive electronics, and the expansion of the acoustic products for major customers on the production line in India will all contribute to the continuous growth of the company's revenue and net profit. In terms of cost control and efficiency improvement, the company has made positive progress, and the bank believes that the company's core operating profit margin for FY24E will reach 5.5%. Overall, the bank expects the company's revenue and net profit for FY24 to increase by 12% and 42% year-on-year, respectively.