FIT Hon Teng (6088.HK) is a leading supplier of AirPods and AI server connectors. The company's first AirPods production line in Vietnam has started shipping in the first quarter of 2024, contributing 5-7% of FY24E sales. FIT plans to expand its capacity in India by 2025, with 6 additional production lines. FIT's management expects AirPods sales to grow in 2H24E, contributing 5-7% of FY24E sales. FIT's 2024 outlook is positive, with strong growth in AirPods, AI server products, and the automotive business. FIT's management has maintained a positive outlook for 2024, with guidance for high revenue growth, 15%+ GP YoY growth, and 15%+ OP YoY growth, driven by AirPods share growth, AI server product revenue, and Voltaira automotive business integration. The recent stock correction provides an attractive buying opportunity, with a P/E ratio of 11x FY24E and 7.6x FY25E. The consensus EPS is expected to increase from US$2.30 to US$4.20 in 2024. FIT's management is optimistic about the company's future growth prospects.
