FIT Hon Teng (6088) investor relations material

Executive summary

• Revenue grew 8.0% YoY in 2Q26 to $1,298M, and for the six months ended June 30, 2026, rose 8.3% YoY to US$2,496 million; net income up 15.7% YoY in 2Q26 to $28M and up 26.3% YoY for the half-year to US$38 million, driven by strong cloud and system products segments.

• Gross profit increased 9.6% YoY in 2Q26 and 11.4% YoY for the half-year, with gross margin improving to 19.13% from 18.59% YoY.

• Operating profit surged 40.7% YoY in 2Q26 but declined 29.5% YoY for the half-year; operating margin was 3.0% in 2Q26 and 2.97% for the half-year.

• Net profit margin rose to 2.1% in 2Q26 and 1.53% for the half-year; basic EPS was $0.37 in 2Q26 and US0.54 cents for the half-year.

• No interim dividend was declared for the period.

Financial highlights

• Revenue: $1,298M in 2Q26 (+8.0% YoY); US$2,496M for the half-year (+8.3% YoY).

• Gross profit: $234M in 2Q26 (+9.6% YoY); US$477M for the half-year (+11.4% YoY); gross margin 18.0% in 2Q26 and 19.13% for the half-year.

• Operating profit: $39M in 2Q26 (+40.7% YoY); US$74M for the half-year (-29.5% YoY); operating margin 3.0% in 2Q26 and 2.97% for the half-year.

• Net profit: $28M in 2Q26 (+15.7% YoY); US$38M for the half-year (+26.3% YoY); net margin 2.1% in 2Q26 and 1.53% for the half-year.

• Basic EPS: $0.37 in 2Q26 (+8.8% YoY); US0.54 cents for the half-year (+22.7% YoY).

Outlook and guidance

• 2026 full-year revenue expected to grow over 15% YoY, with gross profit and operating profit also guided to increase by more than 15% YoY.

• Segment guidance for 3Q26 and 2026 shows strongest growth in Cloud/Datacenter and System Products.

• Three-year outlook forecasts Cloud/Datacenter revenue mix rising from 16% in 2024 to low-30% by 2028.

• AI-driven demand expected to sustain growth in cloud and connector markets; focus remains on 5GAIoT, acoustics, and auto mobility as part of the "3+3" strategy.

• Prudent approach in consumer interconnects due to memory supply constraints; continued investment in automotive and system products.