On May 26, FIT Hon Teng fell 3.09% in regular trading, trading at HKD 8.78 per share, with trading volume of approximately HKD 257 million. The decline came as elevated valuation concerns resurfaced following a multi-day rebound.

On the news front, the company's price-to-earnings ratio remains at approximately 54 times, significantly exceeding the industry average. The stock had previously staged a strong recovery after parent company Hon Hai (Foxconn) disclosed at its investor conference that AI servers now account for over 50% of total server revenue, with full-year AI rack shipments expected to double and capital expenditure growth planned at over 30%. CPO switches are also expected to enter mass production in Q3.

However, with net profit margins yet to demonstrate a meaningful breakthrough, the market remains divided on whether earnings delivery can keep pace with the elevated valuation. Following the recent rally driven by parent company guidance, selling pressure re-emerged as investors moved to lock in gains, causing the stock to retrace part of its prior advance.

(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.)