HK Stock Market Move | Hongteng Precision (06088) fell over 14% despite a 20% year-on-year increase in interim net profit, but operating profit dropped by 29.5%.

Hong Teng Precision (06088) fell over 14%, with a current drop of 14.23%, trading at HKD 5.125, and a transaction volume of HKD 411 million. In terms of news, Hong Teng Precision announced its mid-term results for 2026, reporting a profit attributable to shareholders of USD 38.097 million, an increase of 20.9% year-on-year. Notably, operating profit for the period was USD 74 million, a decrease of 29.5% compared to the previous year, primarily due to currency exchange impacts; the operating profit margin fell from 4.56% to 2.97%. Pre-tax profit was USD 52.38 million, a year-on-year decline of 34.9%. Revenue for the period was approximately USD 2.5 billion, an increase of 8.3%. Revenue from smartphone terminals grew by 2.9%, revenue from cloud network infrastructure terminals increased by 55.8%, while revenue from computers and consumer electronics terminals decreased by 20.6%, mainly due to shortages of upstream components like memory chips. Revenue from the automotive terminal market decreased by 6.2%.