Hon Hai Precision Industry Co., Ltd.
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- China's Luxshare buys iPhone plant to strengthen Apple ties Jul 17, 2020
- Sharp looks to move up PC unit Dynabook's listing to 2020: CEO Jul 3, 2020 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 2019 | TWD | USD |
| Revenue | 5,342.81B | 172,835.41M |
| Gross Profit | 315,868.42M | 10,218.07M |
| Operating income | 114,896.88M | 3,716.81M |
| Income before tax | 144,243.89M | 4,666.16M |
| Net income | 115,308.73M | 3,730.14M |
| EBITDA | 181,905.74M | 5,884.49M |
| Diluted EPS | 8.23 | 0.26 |
| Dividends Per Share | 4.20 | 0.13 |
| Total Assets | 3,320.94B | 110,782.99M |
| Total liabilities | 1,918.27B | 63,991.58M |
| Total equity | 1,239.98B | 41,364.52M |
| Operating cash flow | 265,267.52M | 8,581.18M |
| Currency in TWD | Currency in USD |
Historical Data
| Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | |
| Revenue | 4,482.14B | 4,358.73B | 4,706.73B | 5,293.80B | 5,342.81B |
| Gross Profit | 320,591.96M | 321,584.98M | 303,006.94M | 332,029.90M | 315,868.42M |
| Operating income | 164,268.57M | 174,939.50M | 112,570.43M | 136,146.87M | 114,896.88M |
| Income before tax | 194,129.97M | 197,122.29M | 172,055.87M | 154,019.72M | 144,243.89M |
| Net income | 146,866.97M | 148,662.98M | 138,734.40M | 129,065.10M | 115,308.73M |
| EBITDA | 235,107.03M | 237,776.39M | 173,002.89M | 195,334.67M | 181,905.74M |
| Diluted EPS | 10.57 | 10.65 | 9.88 | 9.19 | 8.23 |
| Dividends Per Share | 4.54 | 5.62 | 2.50 | 4 | 4.20 |
| Total Assets | 2,308.29B | 2,592.04B | 3,407.21B | 3,381.35B | 3,320.94B |
| Total liabilities | 1,243.49B | 1,454.51B | 2,232.87B | 2,045.58B | 1,918.27B |
| Total equity | 1,007.62B | 1,078.74B | 1,083.12B | 1,211.87B | 1,239.98B |
| Operating cash flow | 259,174.72M | 190,685.52M | -18,834.07M | -25,748.60M | 265,267.52M |
| Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | |
| Revenue | 141,151.85M | 135,151.15M | 154,711.26M | 175,556.20M | 172,835.41M |
| Gross Profit | 10,096.09M | 9,971.37M | 9,959.89M | 11,010.97M | 10,218.07M |
| Operating income | 5,173.14M | 5,424.34M | 3,700.21M | 4,514.98M | 3,716.81M |
| Income before tax | 6,113.54M | 6,112.16M | 5,655.50M | 5,107.69M | 4,666.16M |
| Net income | 4,625.13M | 4,609.58M | 4,560.22M | 4,280.13M | 3,730.14M |
| EBITDA | 7,403.99M | 7,372.72M | 5,686.63M | 6,477.80M | 5,884.49M |
| Diluted EPS | 0.33 | 0.33 | 0.32 | 0.30 | 0.26 |
| Dividends Per Share | 0.14 | 0.17 | 0.08 | 0.13 | 0.13 |
| Total Assets | 70,274.29M | 80,425.79M | 114,495.58M | 110,009.29M | 110,782.99M |
| Total liabilities | 37,857.30M | 45,130.70M | 75,033.31M | 66,551.38M | 63,991.58M |
| Total equity | 30,676.46M | 33,471.38M | 36,397.05M | 39,427.35M | 41,364.52M |
| Operating cash flow | 8,161.93M | 5,912.58M | -619.07M | -853.89M | 8,581.18M |
Valuation Measures
| Dec 2019 | |
| PER | 10.91 |
| ROA | 3.44% |
| ROE | 9.40% |
| Operating margin | 2.15% |
| Profit margin | 2.15% |
Key executives
- Chairman & Chief Executive Officer: Yang-wei Liu
- Head-Finance & Deputy Spokesman: Te Tsai Huang
- Deputy General Manager: Wei Ming Chen
- Associate Vice President: Jim Hung
- Manager: Yi Hsiung Chou
Shareholders
- KUO TAI MING /HONHAI/ (11.9%)
- The Vanguard Group, Inc. (2.8%)
- BlackRock Fund Advisors (1.9%)
- Fidelity Management & Research Co. LLC (1.2%)
- Norges Bank Investment Management (1.2%)
- Dimensional Fund Advisors LP (0.7%)
- Schroder Investment Management Ltd. (0.7%)
- BlackRock Advisors (UK) Ltd. (0.5%)
- APG Asset Management NV (0.5%)
- Yuanta Securities Investment Trust Co., Ltd. (0.4%)
Contact Details
- Website:http://www.honhai.com.tw
- Address: No. 2 Tzu Yu Street, Tucheng District, New Taipei, 236 78, Taiwan
- Phone: +886.2.2268.3466
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Competitors
- Benchmark Electronics, Inc.
- Sanmina Corporation
- Lotes Co., Ltd
- Celestica Inc.
- CommScope Holding Co., Inc.
- Electric Connector Technology Co., Ltd. Class A
- ASE Technology Holding Co., Ltd.
- Jabil Inc.
- Universal Scientific Industrial (Shanghai) Co., Ltd. Class A
- PT Sat Nusapersada Tbk
- Wistron Corporation
- UDE Corp.
- Hotron Precision Electronic Industrial Co. Ltd.
- Boxlight Corp Class A
- Applied Optoelectronics, Inc.
- NETGEAR, Inc.
- Ledtech Electronics Corp.
- G-SHANK Enterprise Co., Ltd.
- Arlo Technologies, Inc.
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Last Updated on 28 Jan, 2021
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