Asia300

Hon Hai Precision Industry Co., Ltd.

Taiwan

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Mar 28, 2017
Prev close: 91.2
Mar 28, 2017
Market cap:
Market cap(USD):
1,580.38B
52,386.84M
Shares: 17,328.73M

Currency in TWD

Company profile

Market(Ticker): TAI(2317)
Sector:
Industry:
Electronic Technology
Computer Peripherals
Full time employees: --

Business summary

Hon Hai Precision Industry Co., Ltd., manufactures nanotechnology, heat transfer, wireless connectivity and material sciences. The company focuses on nanotechnology, heat transfers, wireless connectivity, material sciences and green manufacturing process. It also provides logistic planning and electronic-supplying system for chain management, computer software development, and computer programming services. Its products include cables, connectors, and personal computer components. The company was founded by Terry Gou on February 20, 1974 and is headquartered in Tucheng, Taiwan

Company background

Hon Hai Precision Industry, the world's largest contract manufacturing company, employs more than 1 million workers in China, its main production base. The company produces smartphones, tablet computers and television sets for clients from around the world. It makes the most of its metal mold technology and low-cost production to deliver new products to customers fast.

The company was set up in 1974 by Chairman Terry Gou. After expanding operations through the connector business, it made a full-scale move into contract manufacturing in the 1990s. Business ties with Apple deepened in the 2000s, and the company grew rapidly thanks to orders from the U.S. electronics giant, primarily for smartphones.

Recently, however, Apple's growth has slowed. Hon Hai has thus been looking to diversify its operations. It entered the telecom market by winning a Taiwan fourth-generation high-speed mobile spectrum license in a 2013 auction. In contract manufacturing too, it aims at expanding the range of items it produces. In June this year, Hon Hai acquired a stake in the robotics subsidiary of Japan's SoftBank. Hon Hai is also looking to relocate some production to India and Southeast Asian countries because of rising labor costs in China. It is also stepping up efforts to automate production at plants by introducing industrial robots.

Chairman Gou is known as a charismatic business executive, but the absence of a successor to him is a problem for the company.

In the news

Financial highlights

Dec 2015

  • Local currency
  • US Dollar
Revenue 4,482.14B
Gross profit 320,402.09M
Operating income 164,078.69M
Income before tax 194,129.97M
Net income 146,866.97M
EBITDA 235,107.03M
Diluted EPS 8.46
Dividends per share 3.63
Total assets 2,308.29B
Total liabilities 1,243.49B
Total equity 1,007.62B
Operating cash flow 259,174.72M

Currency in TWD

Revenue 141,151.85M
Gross profit 10,090.11M
Operating income 5,167.17M
Income before tax 6,113.54M
Net income 4,625.13M
EBITDA 7,403.99M
Diluted EPS 0.26
Dividends per share 0.11
Total assets 70,274.29M
Total liabilities 37,857.30M
Total equity 30,676.46M
Operating cash flow 8,161.93M

Currency in USD

Valuation measures

Dec 2015

PER 8.57
ROA 6.15%
ROE 15.15%
Operating margin 3.66%
Profit margin 3.27%

Key executive

  • Chairman & Chief Executive Officer: Terry Gou
  • Chief Technology Officer & CIO: Ga-Lane Chen
  • President-Business Group, Director & VP: Cheng Wu Tai
  • President-Business Group, Director & VP: Fang Ming Lu
  • Director, President-Business Group & VP: Yi Pin Chien

Share holders

  • GOU TERRY(9.3%)
  • The Vanguard Group, Inc.(2.7%)
  • GIC Pte Ltd. (Investment Management)(2.2%)
  • Saudi Arabian Monetary Agency (Investment Management)(2.0%)
  • BlackRock Fund Advisors(1.7%)
  • Hon Hai Precision Industry Co., Ltd.(1.7%)
  • Norges Bank Investment Management(1.2%)
  • APG Asset Management NV(1.1%)
  • Fidelity Management & Research Co.(1.1%)
  • Abu Dhabi Investment Authority (Investment Management)(1.1%)

Address

  • Website: http://www.honhai.com.tw
  • Address: No. 2, Ziyou Street, Tucheng District, New Taipei City, 23678, Taiwan
  • Phone: +886.2.2268.3466

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