已加FIT HONG TENG
6088 FIT HONG TENG 100,000 股 4.24均價
FIT Hon Teng(6088HK)：Optical module and mobile
Solid growth momentum on optical/ mobile biz in FY17-19E
We forecast FIT to deliver sales/NP CAGR of 18%/26% in in FY18/19E
mainly backed by mobile/ comm. infrastructure momentum. We believe FIT
is set to benefit from the emerging trend of wireless charging and
wireless acoustics accessories, while newly acquired optical module will
continue to ride on data center/ cloud computing. We slightly trimmed
FY17E/ 18E EPS by 4%/5% mainly to reflect weak PC demand and nearterm
pricing pressure in optical module as evidenced by major competitors
Finisar (FNSR US) and Lumentum (LITE US)’s recent 3Q/4Q weak results
Rising data demand to drive secular growth in comm. infra. We
estimate comm. infra. segment to deliver 27%/22% YoY in FY18E/19E,
given optical module’s strong growth of 40%/30% in FY18E/ 19E. Backed by
increasing data traffic and cloud computing adoption, we believe this
segment will continue to benefit from rising demand after 5G
pre-commercialization in FY19E. For mobile and wireless devices, we
expect 17%/7% revenue growth in FY18E/19E, mainly driven by wireless
charging/ acoustics accessories. In particular, we expect wireless
charging to be the next upgrade trend for Android smartphones in FY18E.
We forecast PC softness to continue with 3%/3% YoY growth in FY18E/19E,
while EV charging and rising electronic content in vehicles will drive
auto segment to grow 80%/80% YoY growth in FY18E/19E.
Reiterate BUY on attractive valuation
We remain positive on FIT's long-term prospect given leading position
in PC/mobile and increasing share gains in comm. infrastructure after
Avago deal. We slightly revised down TP to HK$5.6 (from HK$6.0) for
lower estimates and unchanged 16.4x FY18E target P/E. We believe FIT’s
current valuation of 12.9x FY18E P/E is attractive, compared to peers’
16.4x FY18E P/E. Catalysts include new iPhone product launch in Sept.
2018 and spec upgrade in USB Type-C/ optical modules.