BRIEF: Automotive electronics boost FIH in first quarter

Electronics manufacturer FIH Mobile Ltd. (2038.HK) announced on Friday that its revenue for the first quarter reached $1.12 billion, up 10.1% year-on-year from $1.02 billion in the same period last year. Its profit for the period nearly tripled to $3.07 million, compared with $1.07 million a year earlier.

The company said the revenue growth was mainly driven by the steady development of its automotive electronics business, as well as a more diversified customer mix and addition of new customers. Its gross margin improved to about 3.61% from 3.17% a year earlier, mainly due to a business shift toward higher-margin segments including automotive electronics, intelligent manufacturing and production line equipment and robotics, alongside its exit from unprofitable or low-margin businesses.

In addition, the company’s government subsidies increased to $1.4 million during the quarter, compared with $700,000 a year earlier. Its interest expenses fell to about $4.7 million from $7.8 million, mainly due to lower bank borrowings and interest rate cuts.

However, the company recorded a foreign exchange loss of $8 million during the quarter, compared with a foreign exchange gain of about $2.9 million a year earlier. Operating expenses increased to $37.5 million from $34.5 million in the same period last year, mainly due to continued investments in automation, robotics, Edge AI-related technologies and advanced manufacturing capabilities.

The company expects its revenue to grow slightly year-on-year in the first half of 2026, with its other financial metrics also improving from the same period last year.

FIH’s stock opened higher on Monday but later turned lower, closing down 2.27% by the midday break. The stock has gained about 42% year-to-date.

By Lee Shih Ta

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