Hon Hai Precision Industry Co., Ltd.
- 71.40 TWD
- -0.60
- -0.83%
Taiwan
Aug 16, 2019Ticker
TAI(2317)Prev. close
72.00Market cap (TWD)
998,135MMarket cap (USD)
31,827.30MShares
13,863M
In the news
- Sharp raises Indonesia output of appliances with local touch Aug 16, 2019
- Asia stocks climb as US-China tariff delay boosts mood Aug 14, 2019
- Foxconn profit falls for 3rd straight quarter as trade war lifts costs Aug 14, 2019
- Sharp readies 3 bonuses a year to energize staff Aug 7, 2019
- Taipei mayor launches new party but is mum on presidential bid Aug 7, 2019 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 2018 | TWD | USD |
| Revenue | 5,293.80B | 175,556.20M |
| Gross Profit | 332,029.90M | 11,010.97M |
| Operating income | 136,146.87M | 4,514.98M |
| Income before tax | 154,019.72M | 5,107.69M |
| Net income | 129,065.10M | 4,280.13M |
| EBITDA | 195,334.67M | 6,477.80M |
| Diluted EPS | 9.19 | 0.30 |
| Dividends Per Share | 4 | 0.13 |
| Total Assets | 3,381.35B | 110,009.29M |
| Total liabilities | 2,045.58B | 66,551.38M |
| Total equity | 1,211.87B | 39,427.35M |
| Operating cash flow | -25,748.60M | -853.89M |
| Currency in TWD | Currency in USD |
Historical Data
| Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | |
| Revenue | 4,213.17B | 4,482.14B | 4,358.73B | 4,706.73B | 5,293.80B |
| Gross Profit | 291,943.85M | 320,591.96M | 321,584.98M | 303,006.94M | 332,029.90M |
| Operating income | 143,191.41M | 164,268.57M | 174,939.50M | 112,570.43M | 136,146.87M |
| Income before tax | 171,140.35M | 194,129.97M | 197,122.29M | 172,055.87M | 154,019.72M |
| Net income | 130,534.72M | 146,866.97M | 148,662.98M | 138,734.40M | 129,065.10M |
| EBITDA | 213,423.26M | 235,107.03M | 237,776.39M | 173,002.89M | 195,334.67M |
| Diluted EPS | 9.46 | 10.57 | 10.65 | 9.88 | 9.19 |
| Dividends Per Share | 4.11 | 4.54 | 5.62 | 2.50 | 4 |
| Total Assets | 2,462.71B | 2,308.29B | 2,592.04B | 3,407.21B | 3,381.35B |
| Total liabilities | 1,474.07B | 1,243.49B | 1,454.51B | 2,232.87B | 2,045.58B |
| Total equity | 930,231.23M | 1,007.62B | 1,078.74B | 1,083.12B | 1,211.87B |
| Operating cash flow | 202,744.41M | 259,174.72M | 190,685.52M | -18,834.07M | -25,748.60M |
| Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | |
| Revenue | 139,033.83M | 141,151.85M | 135,151.15M | 154,711.26M | 175,556.20M |
| Gross Profit | 9,634.08M | 10,096.09M | 9,971.37M | 9,959.89M | 11,010.97M |
| Operating income | 4,725.28M | 5,173.14M | 5,424.34M | 3,700.21M | 4,514.98M |
| Income before tax | 5,647.59M | 6,113.54M | 6,112.16M | 5,655.50M | 5,107.69M |
| Net income | 4,307.61M | 4,625.13M | 4,609.58M | 4,560.22M | 4,280.13M |
| EBITDA | 7,042.92M | 7,403.99M | 7,372.72M | 5,686.63M | 6,477.80M |
| Diluted EPS | 0.31 | 0.33 | 0.33 | 0.32 | 0.30 |
| Dividends Per Share | 0.13 | 0.14 | 0.17 | 0.08 | 0.13 |
| Total Assets | 77,929.07M | 70,274.29M | 80,425.79M | 114,495.58M | 110,009.29M |
| Total liabilities | 46,645.04M | 37,857.30M | 45,130.70M | 75,033.31M | 66,551.38M |
| Total equity | 29,435.83M | 30,676.46M | 33,471.38M | 36,397.05M | 39,427.35M |
| Operating cash flow | 6,690.52M | 8,161.93M | 5,912.58M | -619.07M | -853.89M |
Valuation Measures
| Dec 2018 | |
| PER | 7.60 |
| ROA | 3.80% |
| ROE | 11.24% |
| Operating margin | 2.57% |
| Profit margin | 2.43% |
Key executives
- Chief Financial Officer: Huang Chiu-lien
- Deputy General Manager: Yi Pin Chien
- Head-Accounting: Tsung Kai Chou
- Spokesman: Chih Ping Hsing
Shareholders
- GOU TERRY (11.9%)
- The Vanguard Group, Inc. (3.0%)
- BlackRock Fund Advisors (2.1%)
- GIC Pte Ltd. (Investment Management) (1.7%)
- Hon Hai Precision Industry Co., Ltd. (1.4%)
- Fubon Life Insurance Co., Ltd. (1.2%)
- Fidelity Management & Research Co. (1.1%)
- Saudi Arabian Monetary Agency (Investment Management) (1.1%)
- Norges Bank Investment Management (1.1%)
- BlackRock Japan Co., Ltd. (0.9%)
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
Related Companies
- Cloud Network Technology USA, Inc.
- FIH India Developer Pvt Ltd.
- Foxconn Interconnect Technology Ltd.
- Fusing International, Inc. Pte Ltd.
- CMM Service Pte. Ltd.
- Ingrasys (Singapore) Pte Ltd.
- Beijing FUNATE Innovation Technology Co., Ltd
- 2020 Co. Ltd.
- Baichang Technology Service (Tianjin) Ltd.
- Foxconn Optical Interconnect Technologies Singapore Pte Ltd.
- Futaihua Industry (Shenzhen) Co. Ltd.
- Foxconn Industrial Internet Co., Ltd.
- New Beyond Maximum Industrial Ltd.
- Foxconn (Kunshan) Computer Connector Co., Ltd.
- Foxconn Precision International Ltd.
- High-Jin Enterprise Co. Ltd.
- IPL International Ltd. (Taiwan)
- Falcon Precision Trading Ltd.
- Fast Victor Ltd.
- Cloud Network Technology (Samoa) Ltd.
- Cloud Network Technology Singapore Pte Ltd.
- Hightech Electronics Components, Inc.
- PCE Paragon Solutions USA, Inc.
- Hon Hai Precision Industry Co. Ltd. (China)
- Hongfujin Precision Electronics (Tianjin) Co., Ltd.
- Hongfujin Precision Electronics (Zhengzhou) Co., Ltd.
- Foxconn eMS, Inc.
- Hongfujin Precision Electronics (Chongqing) Co., Ltd.
- Forteq Holdings, Inc.
- Hongfujin Accuracy Industry (Shanxi) Co. Ltd.
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.
- Boxlight Corp Class A
- UDE Corp.
- Guangdong Silver Age Sci & Tech Co., Ltd. Class A
- NETGEAR, Inc.
- Ledtech Electronics Corp.
- G-SHANK Enterprise Co., Ltd.
- Lumentum Holdings, Inc.
- Aerospace Communications Holdings Co., Ltd. Class A
- Kortek Corporation
Copyright © 2019 FactSet Research Systems Inc. All rights reserved.
Last Updated on 16 Aug, 2019