Hon Hai Precision Industries (HNHPF)

QUOTE AND NEWS
Reuters  May 18  Comment 
* To sell entry-level feature phone assets to fih mobile, a subsidiary of hon hai /foxconn technology group, and hmd global, oy for $350 million
Japan Today  May 12  Comment 
Japanese electronics maker Sharp said Thursday it suffered a 256 billion yen annual loss and released no forecast for the current business year as it assesses the impact of its acquisition by Taiwan's Hon Hai. The company also said that an...
Financial Times  May 12  Comment 
Reuters  May 11  Comment 
Sharp Corp began making final preparations on Wednesday to appoint Taiwan-based Hon Hai Precision Industry Co director Tai Jeng-wu as its new president to replace Kozo Takahashi, the Nikkei reported.
newratings.com  Apr 28  Comment 
TOKYO (dpa-AFX) - Sharp Corp. (SHCAY.PK) is considering eliminating about 1,000 more jobs ahead of its takeover by Taiwan's Hon Hai Precision Industry, Nikkei reported. Hon Hai Chairman Terry Gou has given assurances that his company will...
Forbes  Apr 6  Comment 
Shares in Hon Hai Precision, the big Taiwan iPhone assembler that said last week it would lead the purchase of a majority stake in Sharp for $3.5 billion, dropped by 2.1% to a two-and-a-half week  low in Taipei on Tuesday as investors...
Wall Street Journal  Apr 3  Comment 
Success for Sharp, newly under the control of Taiwan’s Foxconn Technology Group, may boil down to whether it can stay ahead in the fast-changing technology for smartphone displays.
Japan Today  Apr 2  Comment 
The head of Taiwanese contract manufacturer Foxconn pledged Saturday to turn around Japan's Sharp Corp by driving change at the struggling LCD panel and home appliance maker, as the two companies signed a takeover deal after a one-month...
Finance Asia  Mar 31  Comment 
The Taiwanese manufacturer is likely to look to build international electronic appliances and devices distribution with the Japanese name.
The Economic Times  Mar 31  Comment 
The main TAIEX index rose 0.4% to 8,773.88 points, after closing at 8,737.04 points in the previous session. Hon Hai jumped 2.3%, boosting the electronics subindex by 0.5 percent.
newratings.com  Mar 30  Comment 
VIENNA (dpa-AFX) - Taiwan Stock Exchange Corp., or TWSE, announced trading in the shares of Hon Hai Precision Industry Co., LTD., Foxconn Technology Group and the securities underlying the companies will be halted starting from March 30 2016...




 

Hon Hai Precision Precision Industry TPE:2354 also known as Foxconn Technology is the world's biggest contract assembler and manufacturer of electronic components.[1] As a third party supplier it produces such things as optics, power supply modules, fiber optics, enclosures and a variety of connectors for large telecommunications companies including original equipment manufacturers among them Apple, Dell, Hewlett-Packard, Cisco, Sony, Nokia, Microsoft and Ericsson. It also engages in the processing, design and sale of motherboards, cameras and cell phones. The iPhone4s, which Hon Hai manufactures along with the iPad will push revenue higher in 2012, the year of its launch in China. The iPad had over 90% of the tablet market in 2010 but that could decrease to 60% in 2011 due to competition from Android based devices like Amazon's kindle fire. The tablet market is expected to be 42% bigger in 2012 with units sold up to 40 million from 29 million in 2011.[2]

In 2009 subsidiary Foxconn International Holdings partnered with Hewlett Packard to build a US$3 billion laptop production facility in Chongqing capable of making 20 million a year.[3] Such an investment is wise considering the electronics and information industry is on track to become the largest in the city by 2012 and Chongquing has the 23rd largest economy in Mainland China and the 20th largest population in China among administrative regions.

In 2010 the company made a big move into the television equpment market with the purchase of Sony's LCD TV production business in Mexico and Slovakia.[1]

Because of the variety of products it has exposure to a lot of markets and industry sectors. The company was founded in 1974 and maintains corporate offices in Taiwan and the Cayman Islands where limited liability subsidiary Foxconn International Holdings is based (est February 8, 2000).

Company Overview

With nearly 611,000 employees with plans to increase that to 1.3 million (2010) the company is one of the world's leading employers (half of them are work and live at its first and currently largest facility located in Shenzhen, China. The plant is comprised of 15 factories; by having large city like facilities with dormatories and hospitals Hon Hai is able to reduce expenses while improving integration, though cramped conditions negatively affect worker satisfaction and may result in lower worker productivity). By comparison Australia and Brazil's global 2000 companies have less than 1 million employees.[4] Unlike many of its competitors it has an interest in expanding into many new sometimes unrelated industries (does not consider it as risky as other companies do, the risk assessment tends to keep others more focused on a group of closely related products). In November 2010 it agreed to an alliance with three silicon valley companies centered around access to Asian markets, capital support, prototypes (the silicon valley companies are growing in the US market but have limited exposure elsewhere).[5]

  • Consumer Electronics - cameras, cell phones,
  • Electronic Equipment - coolers, motherboards, lenses, docking connectors
  • Technology - graphic cards, memory cards
  • Services - logistics and marketing

Hon Hai also provides after sales services (after market parts).

Business and Financials revenue, profits, assets

bil USD[6]'[7] revenue profit assets shareholders
equity
200861.8601.748nana
200959.32362.291731.985813.767
2010
(Jan-Nov)
65.3817
NT2.07T
2.432.0
2011
(Jan-Dec)
92.0

2011 fiscal year' revenue grew 19.89% to $92.0 billion (up 37.5% in the last quarter to $30.5b) higher than the planned 15% growth rate.[8] Fiscal 2010 revenue was $61.24b exceeded by only 106 other publicly traded companies.[9]
  • Subsidiaries

Foxconn International Holdings: As of December 31, 2010 it had a cash balance of US$1,356 million and total assets of $6.017 billion.[10] Total assets were up every year with the exception of 2008 when they were down 17.6% on the calendar year (the decrease showed up at the end of the company's 2009 fiscal year which ends in June, assets were down 28.7% from $6.7b to $5.2b.

fx rate used for first 11 months of 2010 is 31.660209, calculated using data found at xrates.com.[11]

Competition

  • Quanta Computer Inc. is Taiwan's second leading contract manufacturer. It reported a 1% fall in revenue in 2011 to $60b (December results were even worse, down 5.6% to $3b).[8]
  • Compal Electronics (TPE:2324) sold $23b worth of parts in 2011 (down 21%) and $1.7b in December (down 11.6%)
  • Acer (2353-TW) reported revenues of $12.4b in 2011 (down 23.52%) and $1.1b in December (down 7.6%).

References

  1. 1.0 1.1 EU OKs Foxconn bid for Sony's TV production in Slovakia, Mexico (2010-06-28).
  2. Is Research In Motion's Valuation Fair Or Just Bad Public Relations? (December 27, 2011).
  3. HP, Foxconn to set up laptop unit (2009-08-06).
  4. The World's Biggest Companies By Country (2009-04-08).
  5. Hon Hai cements Silicon Valley alliance (2010-11-18).
  6. Hon Hai Precision Industry (2010-07-26).
  7. Sales at Hon Hai Precfision fell 4.58% last month - Taipei Times (2010-12-12).
  8. Forbes: Hon Hai
  9. Hon Hai Dec 2010
  10. Monthly Exchange Rate Average (Taiwan Dollar to USD)
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki