Changes in Hong Kong stocks | Hongteng Precision (06088) fell more than 4% in early trading, and the operating profit margin of the third quarter of the company once again fell short of expectations

The Zhitong Finance App learned that Hongteng Precision (06088) fell more than 4% in early trading. As of press release, it decreased by 3.78% to HK$2.8 million, with a turnover of HK$896.752 million.

According to the news, Hongteng Precision recently announced results. In the first three quarters of this year, the company's revenue and other operating income was about US$3.883 billion, up 6.72% year on year; net profit from continuing operations was US$88.231 million, down 15.64% year on year. In the third quarter, revenue was approximately US$1,378 million, up from US$1,324 million in the same period last year; net profit from continuing operations was US$50.63 million, a year-on-year decrease of 32.69%.

Damo released a research report saying that Hongteng Precision's operating profit for the third quarter once again fell short of expectations. Since coverage began in November last year, the company's profit has continued to fall short of expectations. Damo downgraded its rating from “increasing holdings” to “synchronizing with the market” due to structural profit margin headwinds and delays in monetization of AI projects, and indicating that AI demand momentum has not yet been transformed into sustainable profit growth to offset weakness in other segments. Rising raw material prices and slow efficiency of new plants are also seriously hampering profitability.