China Securities Co., Ltd.: Maintains a "buy" rating on FIT HON TENG (06088), continues to enrich the AI product matrix.

China Securities Co., Ltd. issued a research report stating that it maintains a "buy" rating on FIT HON TENG (06088), with projected revenues of $4.78 billion, $6.15 billion, and $7.53 billion for the years 2025-2027, and net profits attributable to shareholders of $170 million, $300 million, and $450 million, corresponding to PEs of 33x, 18x, and 12x. The company is a global leader in the precision components field, with Hon Hai being the actual controlling shareholder. The company released its interim report for 2025, reporting revenue of $2.305 billion in the first half of the year, a year-on-year increase of 11.5%. The company's net profit attributable to shareholders was $31.51 million, a year-on-year decrease of 3.1%. The company is deepening its "3+3" strategic layout, with its AI and electric vehicle business contributing significantly to revenue growth in the first half of 2025, driving overall revenue growth. The development of AI is driving infrastructure construction for computing power, and the company is focusing on connectivity, power supply, and liquid cooling systems to enhance its AI product portfolio, continuously expanding business opportunities and benefiting from the development of AI. Currently, the impact of the AI business on the company's performance has already been demonstrated, and it is expected to be further strengthened in the future. With the expansion of business scale and continuous improvement of quality and efficiency, the company's profitability is expected to increase in the future.