HK Stock Market Move | FIT HON TENG (06088) rose by more than 8%, with a significant increase in net profit margin in the third quarter. Institutions are optimistic about the contribution of GB200 to performance growth.

FIT HON TENG (06088) rose more than 8%, as of press time, it rose by 7.31% to 3.23 Hong Kong dollars, with a turnover of 1.21 billion Hong Kong dollars. On the news front, FIT HON TENG recently announced its performance, with a 1% and 24% year-on-year increase in revenue/net profit in the third quarter; as of the first three quarters of 2024, the company's revenue/net profit increased by 10%/119% year-on-year. The company's net profit margin in the third quarter has significantly improved to 5.8%. Zhongyin International believes that this is mainly due to the high profit margin of the AI server business, effective cost control, and improved operational efficiency of the company. Foxconn recently stated that the company will occupy at least 40% of the global AI server market next year. Currently, the company is ready with the relevant production capacity to meet the demand for the GB200 AI server, and is optimistic about the prospects of the technology industry in 2025. Zhongyin International pointed out that it is optimistic about FIT HON TENG's participation in the shipment of NVIDIA's GB200 products in 4Q24, and the related order revenue will significantly increase in FY25/26E, with further design in of model numbers and increasing market share opportunities.