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Hon Hai and Pegatron Set New Highs in Feb. Revenue

2015/04/02 | By Ken Liu

Hon Hai Precision Ind. Co., Ltd. and Pegatron Corp., Apple's top-two contract assemblers, saw their revenues for February 2015 hit new highs although the figures dropped from a month earlier due to less workdays in the month interrupted by the Chinese New Year break.

Hon Hai had consolidated revenue of NT$280.02 billion (US$9.03 billion) this February, shedding 29.2 percent from a month earlier but increasing 7 percent year on year. In the first two months of this year, the company's combined revenue was NT$676.02 billion (US$21.80 billion), up 17.5 percent from the same period of last year to set  the highest Jan.-Feb. revenue in its corporate history.

Hon Hai executives say all of the company's February shipments of consumer electronics, telecommunication equipment, and computers declined from those of January.

But they feel the company's revenue for the first quarter of this year is likely to rise from the same quarter of last year to the second highest in its corporate history based on typical workdays in March and normalized turnout of its mainland Chinese employees after the weeklong Chinese New Year holidays, coupled with steady deliveries of Apple iPhone 6 and iPhone 6 Plus.

Pegatron generated consolidated revenue of NT$69.28 billion (US$2.23 billion) in February, plunging 41.3 percent from the previous month yet rising 18.5 percent year on year to set the second- highest February revenue in its corporate history.

The company's consolidated revenue for the first two months of this year was NT$187.33 billion (US$6.04 billion), growing 24.9 percent from the same period of last year to set the maker's best Jan.-Feb. revenue in corporate history.

Industry executives predict the company's consolidated revenue for 2014 to top NT$1 trillion (US$32.25 billion), also projecting the company's earnings for 2015 to rise to NT$8 per share from last year's estimated NT$6.

Over the next three to five years, the company's operating income ratio from assembly orders is projected to be 2.5 percent annually, suggesting its steady growth in profitability.

Foreign institutional investors hold optimism towards Pegatron's business outlook in 2015, predicting the company to win more orders from Apple to assemble iPhones.

(KL)