HK Stock Market Move | FIT HON TENG (06088) fell over 5% as first quarter performance was lower than expected. The company has revised downward its guidance for smart phones and system products for the year.

FIT HON TENG (06088) fell more than 5%, dropping by 5.51% to HK$2.23 as of the time of writing, with a turnover of HK$61.9096 million. On the news front, recently, FIT HON TENG announced that it achieved revenue and other operating income of 1.103 billion US dollars for the three months ending March 31, 2025, an increase of 14.28% year-on-year; net profit from continuing operations was 6.243 million US dollars, a decrease of 38.8% year-on-year. ZhongYuan International pointed out that FIT HON TENG's performance in the first quarter of 2025 was lower than expected, mainly due to a decrease in GPM in 1Q25 and the impact of exchange rate headwinds. ZhongYuan International believes that looking ahead, considering the impact of US tariffs and the uncertainty of the macro economy, the company has lowered its guidance for 2025 smartphone (down 15% year-on-year) and system product (5% to +5% year-on-year growth) revenue, and raised its guidance for operating costs considering global supply chain coordination costs. Therefore, the bank has lowered its F25-26E earnings per share by 10-18% to reflect the first-quarter performance of 2025 and lower guidance.