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Hon Hai Precision Industry Co., Ltd.
- 76.20 TWD
- +0.60
- +0.79%
Taiwan
Sep 20, 2018Ticker
TAI(2317)Prev. close
75.60Market cap (TWD)
1,310.05BMarket cap (USD)
42,545.91MShares
17,328.73M
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- Nikkei Asia300 falls as US-China trade woes resurface May 23, 2018 See more articles on Hon Hai Precision Industry Co., Ltd.
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
Financial Highlights
| Dec 2017 | TWD | USD |
| Revenue | 4,706.73B | 154,711.26M |
| Gross Profit | 303,006.94M | 9,959.89M |
| Operating income | 112,570.43M | 3,700.21M |
| Income before tax | 172,055.87M | 5,655.50M |
| Net income | 138,734.40M | 4,560.22M |
| EBITDA | 173,002.89M | 5,686.63M |
| Diluted EPS | 7.91 | 0.26 |
| Dividends Per Share | 2 | 0.06 |
| Total Assets | 3,407.21B | 114,495.58M |
| Total liabilities | 2,232.87B | 75,033.31M |
| Total equity | 1,083.12B | 36,397.05M |
| Operating cash flow | -18,834.07M | -619.07M |
| Currency in TWD | Currency in USD |
Historical Data
| Dec 2013 | Dec 2014 | Dec 2015 | Dec 2016 | Dec 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 2013 | Dec 2014 | Dec 2015 | Dec 2016 | Dec 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 | |
| PER | 11.88 |
| ROA | 4.62% |
| ROE | 12.83% |
| Operating margin | 2.39% |
| Profit margin | 2.94% |
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
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