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Electronic Technology

Hon Hai Precision Industry Co., Ltd.

  • 75.80 TWD
  • 0.00
  • 0.00%
  • Taiwan
    Sep 21, 2018
  • Ticker
    TAI(2317)
  • Prev. close
    75.80
  • Market cap (TWD)
    1,313.52B
  • Market cap (USD)
    42,862.40M
  • Shares
    17,328.70M

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.

Business Summary

Hon Hai Precision Industry Co., Ltd. manufactures nanotechnology, heat transfer, wireless connectivity and material sciences. 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.

Financial Highlights

Dec 2017 TWDUSD
Revenue4,706.73B154,711.26M
Gross Profit303,006.94M9,959.89M
Operating income112,570.43M3,700.21M
Income before tax172,055.87M5,655.50M
Net income138,734.40M4,560.22M
EBITDA173,002.89M5,686.63M
Diluted EPS7.910.26
Dividends Per Share20.06
Total Assets3,407.21B114,495.58M
Total liabilities2,232.87B75,033.31M
Total equity1,083.12B36,397.05M
Operating cash flow-18,834.07M-619.07M
Currency in TWDCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 3,952.31B 4,213.17B 4,482.14B 4,358.73B 4,706.73B
Gross Profit 254,694.50M 291,943.85M 320,591.96M 321,584.98M 303,006.94M
Operating income 109,314.39M 143,191.41M 164,268.57M 174,939.50M 112,570.43M
Income before tax 131,457.62M 171,140.35M 194,129.97M 197,122.29M 172,055.87M
Net income 106,697.15M 130,534.72M 146,866.97M 148,662.98M 138,734.40M
EBITDA 182,927.62M 213,423.26M 235,107.03M 237,776.39M 173,002.89M
Diluted EPS 6.17 7.57 8.46 8.52 7.91
Dividends Per Share 1.39 3.29 3.63 4.50 2
Total Assets 2,312.46B 2,462.71B 2,308.29B 2,592.04B 3,407.21B
Total liabilities 1,503.14B 1,474.07B 1,243.49B 1,454.51B 2,232.87B
Total equity 764,670.06M 930,231.23M 1,007.62B 1,078.74B 1,083.12B
Operating cash flow 178,002.94M 202,744.41M 259,174.72M 190,685.52M -18,834.07M
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 133,158.73M 139,033.83M 141,151.85M 135,151.15M 154,711.26M
Gross Profit 8,580.99M 9,634.08M 10,096.09M 9,971.37M 9,959.89M
Operating income 3,682.94M 4,725.28M 5,173.14M 5,424.34M 3,700.21M
Income before tax 4,428.97M 5,647.59M 6,113.54M 6,112.16M 5,655.50M
Net income 3,594.76M 4,307.61M 4,625.13M 4,609.58M 4,560.22M
EBITDA 6,163.07M 7,042.92M 7,403.99M 7,372.72M 5,686.63M
Diluted EPS 0.20 0.25 0.26 0.26 0.26
Dividends Per Share 0.04 0.10 0.11 0.13 0.06
Total Assets 77,590.26M 77,929.07M 70,274.29M 80,425.79M 114,495.58M
Total liabilities 50,435.34M 46,645.04M 37,857.30M 45,130.70M 75,033.31M
Total equity 25,657.05M 29,435.83M 30,676.46M 33,471.38M 36,397.05M
Operating cash flow 5,997.15M 6,690.52M 8,161.93M 5,912.58M -619.07M

Valuation Measures

Dec 2017
PER11.88
ROA4.62%
ROE12.83%
Operating margin2.39%
Profit margin2.94%

Key executives

  • Chairman & Chief Executive Officer: Terry Gou
  • Chief Financial Officer: Te Tsai Huang
  • Manager-Central Information: Chao-An Chou
  • Executive Vice President: Shih-Chung Kao
  • Vice President & Plant Manager: Chao Yang Kao

Shareholders

  • GOU TERRY (12.2%)
  • The Vanguard Group, Inc. (2.9%)
  • BlackRock Fund Advisors (2.3%)
  • GIC Pte Ltd. (Investment Management) (1.9%)
  • Abu Dhabi Investment Authority (Investment Management) (1.8%)
  • Saudi Arabian Monetary Agency (Investment Management) (1.8%)
  • Hon Hai Precision Industry Co., Ltd. (1.5%)
  • Norges Bank Investment Management (1.3%)
  • Fidelity Management & Research Co. (1.1%)
  • Dimensional Fund Advisors LP (0.7%)

Contact Details

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

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Competitors

  • Sanmina-SCI Corporation
  • Benchmark Electronics, Inc.
  • Jabil Inc.
  • Celestica Inc.
  • Universal Scientific Industrial (Shanghai) Co., Ltd. Class A
  • ASE Technology Holding Co., Ltd.
  • Arlo Technologies, Inc.
  • UDE Corp.
  • Applied Optoelectronics, Inc.
  • Integrated Micro-Electronics, Inc.
  • Ledtech Electronics Corp.
  • G-SHANK Enterprise Co., Ltd.
  • Lumentum Holdings, Inc.
  • NETGEAR, Inc.
  • Aerospace Communications Holdings Co., Ltd. Class A
  • ARRIS International Plc
Last Updated on 21 Sep, 2018

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