HK Stock Market Move | FIT Hon Teng (06088) fell more than 4% in morning trading; Morgan Stanley said the company's third-quarter operating profit again fell short of expectations.

FIT Hon Teng (06088) fell more than 4% in morning trading. As of press time, it was down 3.78% at HK$2.8, with turnover of HK$89.6752 million. On the news front, FIT Hon Teng recently released its results. In the first three quarters of this year, the company's revenue and other operating income were approximately US$3.873 billion, up 6.72% year on year; net profit from continuing operations was US$88.231 million, down 15.64% year on year. In the third quarter, revenue was approximately US$1.378 billion, higher than US$1.324 billion in the same period last year; net profit from continuing operations was US$50.063 million, down 32.69% year on year. Morgan Stanley said in a research report that FIT Hon Teng's third-quarter operating profit again fell short of expectations, and its earnings have continued to miss expectations since the bank initiated coverage in November last year. Morgan Stanley downgraded its rating to "equal-weight" from "overweight" due to structural margin headwinds and delayed monetization of AI projects, and said AI demand momentum has yet to sustainable profit growth to offset weakness in other segments, while rising raw material prices and slow efficiency at new plants are also severely weighing on profitability.