GO
| HSI1 | 24,448.95 | -32.91 | 173.71B |
| HSCEI1 | 8,260.15 | -13.95 | 54.80B |
| Back Zoom + Zoom - Block Traded | |
|
2026-11-09 11:06:11 Morgan Stanley published a research report stating that FIT HON TENG (06088.HK)'s third-quarter operating profit again missed expectations. The broker downgraded the rating from "Overweight" to "Equalweight" due to structural margin headwinds and delays in monetizing AI projects. It said AI demand momentum has yet to translate into sustainable earnings growth to offset weakness in other segments, while rising raw material prices and slow efficiency ramp-up at new plants have also severely weighed on profitability. The TP was sharply cut by 55% from HKD8 to HKD3.6, equivalent to a forecast 2027 price-to-earnings ratio of 17.4x. The broker considered the valuation reasonable amid deteriorating demand in the consumer electronics and automotive markets, which still account for more than 70% of revenue, as well as persistent profitability headwinds. The broker noted that since initiating coverage in November last year, the company's earnings have consistently fallen short of expectations. Management sharply lowered its full-year 2026 operating profit guidance from a YoY increase of 70% to flat YoY growth. The broker lowered its EPS forecasts for FIT HON TENG for 2026, 2027 and 2028 by 23%, 47% and 49%, respectively. (ha/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |