FIT HON TENG (06088) dropped over 12% in morning trading, with the stock showing three consecutive days of decline, though monthly cumulative gains still approach 85%. As of press time, the stock fell 11.21% to HK$4.91, with turnover reaching HK$751 million.

On the news front, FIT HON TENG previously released its interim results, achieving revenue of US$2.305 billion in the first half, up 11.53% year-on-year; net profit attributable to shareholders was US$30 million, down 7.53% year-on-year.

Minsheng Securities noted that while the company achieved revenue growth, the decline in core business and rising costs compressed profit margins, resulting in modest gross profit growth and declining gross margin. Increased income tax expenses led to falling net profits and reduced earnings per share, putting profitability under pressure.

China Merchants Bank International issued a research report stating that despite the company lowering guidance for smartphones, consumer connectivity, and system products based on tariff and macro uncertainties, it maintains a positive outlook on the company's "3+3 strategy" performance for next year and 2027, based on accelerated production of cloud and AI server products and AirPods. The bank lowered the company's earnings per share forecasts for this year through 2027 by 5% to 15%, reflecting first-half performance, new business guidance, and secured projects. The target price was raised from HK$3.48 to HK$4.96, with a "Buy" rating maintained.