【行业研究报告】FIT HON TENG-Results Were in Line with Expectations, While Layout in EV Mobility to Bring Huge Expandable Market Space, "Buy"

Wemaintaintheinvestmentratingas"Buy"butsetTPtoHK$1.65.We
forecastFY24-FY26EPStobeUS$0.023/US$0.029/US$0.035,
respectively.Consideringfutureperformancegrowthrateandhistorical
valuationlevel,wegivea9.0x2024PER,correspondingtoTPofHK$1.65
andmaintaintheinvestmentratingas"Buy".
FITHonTeng's(the“Company”)FY23resultswereinlinewithour
FITHonTeng's(the“Company”)FY23resultswereinlinewithour
expectations.OperatingrevenueinFY23decreased7.4%yoytoUS$4,196
million.Shareholders'netprofitdecreased23.5%yoytoUS$130million.
"3+3"strategywillprovidestrongimpetusfortheCompany's
development.TheCompanyimplements"3+3"strategy,promotingthe
developmentofEVs,5GAIoTandacoustics.IntermsofEVbusiness,the
trendofelectrificationandintelligentizationisputtingforwardhigher
requirementsforthenumberandqualityofautomotiveconnectors.Witha
completerangeofconnectorproducts,globallayoutandtheassistanceof
MIH,EVbusinesswillbecomeastrongdrivingforceforitsdevelopment.In
termsofaudiobusiness,theCompanyhasamatureacousticproduct
portfolioandithasbecomeasupplierofTWSproductofNorthAmerican
customer.ExplosionofAIserverbringshugedemandforhigh-speed
connection;thus,weexpecttheCompanytobenefitfromtheconstructionof
datacenterspromotedbyAIdevelopment,andthecorresponding
copper-basedandoptical-basedproductswillfaceahugemarketdemand.
TheCompanyexpectsthatRevenueMixfromEVMobility,newGeneration
5GAIoTandAudiowillreach30%in2024and40%in2025.
ProductexpansiondepthofEVmobilitybusinessisexpectedtoexceed
marketexpectation.TheCompanyhascompletedtheacquisitionofSWH
andrenameditasFITVoltaira,oneoftheleadingmanufacturersofsensor,
connectivityandelectrificationsolutionsandhaslongservedautomotive
OEMs,globallarge-scaletier-1andtier-2automotivesystemsuppliers.The
Company'sproductmatrixwillbefurtherenriched,andtheCompany’slayout
inEuropewillgreatlyaccelerate;theCompanyislikelytoobtainmore
EuropeanandAmericancustomers.Inaddition,theCompanyisexpectedto
furtherdeveloppartnersandcustomersthroughMIH.Therefore,webelieve
thatthedevelopmentofEVmobilitybusinesswillexceedmarket
expectations.
Catalysts:Furtherexpansionofcustomerbase;massiveproductionofnew
EVmobilityproducts;expansioninAImarket.
Risks:SlowerthanexpectedexpansionofEVmobilitybusiness;lessthan
expectedpenetrationofTWSproducts;lessthanexpecteddemandforservers
andstorage.
Rating:Buy
Maintained
6-18mTP目标价:HK$1.65
HK$1.95