Hon Hai's Consolidated Revenue Up 5% to NT$275.084 Bn. in August
2014/09/23 | By Steve ChuangHon Hai Precision Industry Co., Ltd., world's largest EMS (electronics manufacturing service) firm by size, reported consolidated revenue of NT$275.084 billion (US$9.169 billion) for August, up 5% month-on-month but down 1.9% year-on-year (YoY), according to the firm's latest financial report.
Hon Hai's consolidated revenue has remained below NT$300 billion (US$10 billion) for two consecutive months to disappoint investors, due mainly to the firm's fine-tuning the production of iPhone 6 during the period. The new iPhone is scheduled for delivery to Apple beginning in September.
Given that global shipments of iPhone 6 are expected by global market researchers to reach 80-90 million units this year, institutional investors therefore generally believe Hon Hai to regain considerable growth momentum starting in September, with single-month consolidated revenue to recover to over NT$330 billion (US$11 billion). The investors are also optimistic that the expected uptrend will continue through Q4, during which the firm's consolidated revenue will likely peak in November or December.
While its August revenue hadn't yet rebounded as strongly as expected from a 17-month nadir of NT$260.217 billion (US$8.674 billion) in July, Hon Hai emphasized that its shipments of consumer electronics and PCs both grew slightly, with that of communication products staying flat.
For the first eight months of this year, the firm's cumulative consolidated revenue totaled NT$2.2976 trillion (US$76.586 billion), edging up 0.49% YoY, shows the firm's report.
Hon Hai predicts its Q3 performance to grow moderately from Q2, and revenue in Q4 to likely hit a single-quarter high to greatly improve from Q3.
Investors generally are awaiting news of Hon Hai chairman Terry Guo's possible visit to Indonesia in October, regarded as a vital step to to restart negotiations with the Indonesian government for a planned investment project, which has stalled for some time mainly because the local government declines to offer preferential treatment as requested by the Taiwanese firm. (SC)
| Hon Hai's 2014 Consolidated Revenue by Month | ||
| Month
| Consolidated Revenue
| YoY Growth Rate
|
| Jan.
| NT$314.551 Bn.
| 0.33%
|
| Feb.
| NT$260.625 Bn.
| 10.88%
|
| Mar.
| NT$307.819 Bn.
| 18.22%
|
| Apr.
| NT$294.441 Bn.
| 0.92%
|
| May
| NT$267.966 Bn.
| - 10.82%
|
| Jun.
| NT$316.993 Bn.
| 4.06%
|
| Jul.
| NT$260.217 Bn.
| - 13.33%
|
| Aug.
| NT$275.084 Bn.
| - 1.91%
|