Morningstar

Hon Hai Precision Industry Co Ltd 2317

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Stock XTAI Rating as of
TWD 191.00 +1.50 (0.79%)
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As of Delayed Price Open

Company Report

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Hon Hai Seeing Accelerating Demand From Artificial Intelligence

Dan Baker

Apple, which has established itself as a consumer electronics behemoth over the past decade, has propelled Hon Hai into the world’s largest contract manufacturer. Despite its entrenched position in Apple, which accounts for around 55% of the group’s revenue, Hon Hai is faced with increasing competition in the traditional assembly business at a time when smartphone demand has matured. As a result, its returns on invested capital have fallen to 11% in 2023 from 23% in 2016.

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Price vs Fair Value

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2317 is trading within a range we consider fairly valued.
Price
TWD 189.50
Fair Value
TWD 457.00
Uncertainty
Medium
1-Star Price
TWD 683.30
5-Star Price
TWD 597.10
Economic Moat
Mldzq
Capital Allocation
Hhkrqsrq

Bulls Say, Bears Say

Bulls

Hon Hai will defend its leading position in the iPhone assembly supply chain as new entrant Luxshare suffers from weak production yields and struggles to gain market share.

Bears

Increased price competition in the iPhone assembly supply chain due to the entry of Luxshare could erode Hon Hai’s profitability and returns on invested capital.

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News

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Trading Information

Previous Close Price
TWD 189.50
Day Range
TWD 190.00–194.00
52-Week Range
TWD 94.00–234.50
Bid/Ask
TWD 190.50 / TWD 191.00
Market Cap
TWD 2.64 Tril
Volume/Avg
50.2 Mil / 88.0 Mil

Key Statistics

Price/Earnings (Normalized)
18.38
Price/Sales
0.43
Dividend Yield (Trailing)
2.85%
Dividend Yield (Forward)
2.85%
Total Yield
2.85%

Company Profile

Hon Hai Precision is the world's largest contract manufacturer of consumer electronics, communications, and computer products. It is the biggest supplier to Apple, whose business accounted for around 54% of overall revenue in 2023. Hon Hai is also involved in the production of upstream components such as electronic connectors, semiconductor packaging, and metal casings for smartphones. These upstream activities are mainly conducted through its listed majority-owned subsidiaries Foxconn Industrial Internet and FIH Mobile. In response to its traditional end markets of computers, smartphones, and telecom equipment maturing in 2019 it started on a strategy to develop expertise in three new growth areas—electric vehicles, digital health, and robotics.
Sector
Technology
Industry
Electronic Components
Stock Style Box
Large Core
Total Number of Employees
1.3 Mil
Website
https://www.foxconn.com

Competitors

Valuation

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Metric
2317
02382
TSM
Price/Earnings (Normalized)
 18.3827.9634.16
Price/Book Value
 1.722.158.31
Price/Sales
 0.431.3912.64
Price/Cash Flow
 15.9115.0620.43
Price/Earnings
2317
02382
TSM

Financial Strength

Metric
2317
02382
TSM
Quick Ratio
 1.161.482.19
Current Ratio
 1.611.762.47
Interest Coverage
 3.513.8390.72
Quick Ratio
2317
02382
TSM

Profitability

Metric
2317
02382
TSM
Return on Assets (Normalized)
 4.14%3.42%16.87%
Return on Equity (Normalized)
 10.94%7.23%27.10%
Return on Invested Capital (Normalized)
 5.70%5.33%19.84%
Return on Assets
2317
02382
TSM

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