China Merchants Bank International released a research report stating that FIT HON TENG's (06088) second quarter performance largely met the firm's expectations, with revenue and net profit rising 9% and 13% year-over-year respectively. The firm lowered the company's earnings per share forecasts for 2024 through 2027 by 5% to 15%, reflecting first-half performance, new business guidance, and projects secured. The target price was raised from HKD 3.48 to HKD 4.96, equivalent to 16 times next year's projected price-to-earnings ratio, consistent with the eight-year average, maintaining a "Buy" rating.

The firm expressed encouragement regarding management's indication that the company's business transformation accelerated in the second quarter, with strategic cloud and automotive segments accounting for 36% of quarterly sales, recording 28% and 115% year-over-year growth respectively. The firm noted that despite the company lowering guidance for smartphones, consumer internet, and system products based on tariff and macroeconomic uncertainties, it maintains a positive outlook for the company's 3+3 strategy performance in 2025 and 2027, driven by cloud and artificial intelligence server products and accelerated AirPod production.