On May 29, FIT Hon Teng fell 3.04% in regular trading, trading at HKD 8.94 per share, with trading volume of approximately HKD 217 million.

The decline came as elevated valuation concerns resurfaced following a string of gains. The company currently trades at a price-to-earnings ratio of approximately 52 times, far exceeding the industry average. The stock had previously rallied on news that parent company Foxconn secured a major full-optical CPO switch cabinet order from NVIDIA, with delivery targets raised substantially from 10,000 to 50,000 units. Additionally, Foxconn announced that AI servers now account for over 50% of its total server revenue, with annual AI rack shipments expected to double and capital expenditure planned to grow over 30%.

However, with net profit margins yet to achieve a meaningful breakthrough, the market remains divided on whether earnings delivery can keep pace with the elevated valuation. Foreign investors have continued to sell heavily in recent sessions, and short-term profit-taking pressure has re-emerged, causing the stock to retrace part of its recent gains.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)