Half Year 2024 Foxconn Interconnect Technology Ltd Earnings Call Transcript
Key Points
- FIT Hon Teng Ltd (FITGF) reported a 19.5% year-on-year increase in second-quarter revenues, reaching USD1.1 billion.
- The company's gross profit margin expanded to 20.4% during Q2, achieving their target of 20% on a six-month basis.
- The smartphone segment outperformed prior guidance during the second quarter, benefiting from better-than-expected shipments.
- FIT Hon Teng Ltd (FITGF) is on track to capture more business opportunities from AI and cloud computing, with new AI product launches progressing as scheduled.
- The acquisition of Ccloud is expected to enhance FIT's capabilities in high-speed networking and optic markets, supporting product development for 5G AIoT solutions.
- FIT Hon Teng Ltd (FITGF) slightly lowered its full-year revenue guidance from a low-double-digit to a high-single-digit increase due to changes in product mix.
- The automotive segment faces industry-wide headwinds on EV orders, leading to an adjusted growth pace to single-digit for the third quarter.
- The system products segment is expected to see a slight decline in Q3 and full-year revenue compared to last year due to resource reallocation for new production lines.
- Despite a favorable acquisition cost, the acquisition of the loss-making AK Group raises concerns about potential risks and integration challenges.
- Macroeconomic uncertainties persist, leading to a maintained guidance of a low double-digit decline in smartphone segment orders for the third quarter and full year.
Good morning, everyone, and welcome to the live audio webcast of FIT Hon Teng's fiscal year 2024 interim results presentation. Today, we're honored to have Mr. Chris Lu, Chief Operating Officer and Chief Financial Officer for FIT Hon Teng joining us today.
During the presentation, Chris will provide a summary of the group's performance for the interim period ended June 30, 2024, and outlook for the second half of 2024. You can download our PowerPoint from the resources box below the webcast window. We kindly note that the language used for this audio webcast is English. If you have any questions for management, kindly submit your questions in English anytime through the Q&A panel.
Before I turn the call over to Chris, I'd like to first remind you that while FIT has taken every reasonable care in preparing today's presentation, the information and the materials containing it and discussed in the following Q&A session are all provided on an as-is basis and does not constitute investment advice. Management on today's call may also make forward-looking statements based on current
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