Foxconn International 2038

Re: Foxconn International 2038

Postby winston » Tue Nov 06, 2012 2:20 pm

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DJ MARKET TALK: Foxconn Shares Rallied For Wrong Reasons - MS

1339 [Dow Jones] Morgan Stanley notes "unconfirmed market speculation" about Foxconn International (2038.HK) getting iPhone 5 orders and hopes about a rapidly diversifying clientele, have caused recent share price volatility, but says Foxconn shares have "rallied for the wrong reasons."

It believes Foxconn's current valuation (1X P/B; FCF yield of 10.2% in 2013) and a window till March 2013 before next financial reporting provide opportunities for the shares to trade higher.

"However, we view the rally as unsustainable without a solid turnaround - and we see high margin volatility and a gloomy outlook from share-losing clients."

Foxconn rallies 5.0% at HK$3.78 on top of its 31.9% surge Monday; Citi and Jefferies both tip that the company may get outsourcing orders for iPhone 5 from its parent company Hon Hai.


Source: Dow Jones & Company, Inc.
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Re: Foxconn International 2038

Postby winston » Wed Jun 25, 2014 5:08 am

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iPhone maker races up on talk of bigger screens

The share price of FIH Mobile (2038), longtime manufacturers of Apple handsets surged nearly 8 percent yesterday on news the American smartphone maker would launch the iPhone6 and iPhone5s with bigger screens in September.

Apple is ramping up production of iPhones with 4.7 and 5.5-inch screen sizes, which may be shipped to retailers around September, Bloomberg reported.

Measuring 138 millimeters long and six millimeters thick, the two devices will also be the thinnest iPhones yet.

Production of the iPhone 6 is rumored to start in July. Hon Hai Precision Industry will recruit more than 100,000 people for its facilities in Shenzhen, Zhengzhou, Chengdu and Guiyang to produce the latest phone, Taiwan-based Economic Daily News reported on Monday. The report described the recruitment drive as Hon Hai's largest single hiring spree in China.

Fellow Taiwanese contract manufacturer Pegatron Corp will also expand its workforce in one mainland plant by 30 percent, in response to expected high demand for the new iPhones.

FIH Mobile also announced a positive profit alert for the half year that ends this month. The increase is primarily due to improving gross profit margins thanks to rising yield and operational efficiency.

Shares of FIH closed 7.56 percent higher at HK$4.98.


Source: The Standard HK
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Re: Foxconn International 2038

Postby behappyalways » Fri Sep 19, 2014 3:08 pm

Foxconn Struggles to Meet New iPhone Demand
http://blogs.wsj.com/chinarealtime/2014 ... ne-demand/
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Re: Foxconn International 2038

Postby behappyalways » Fri Nov 07, 2014 12:37 pm

After Suicide, Foxconn Worker’s Poems Strike a Chord
http://blogs.wsj.com/chinarealtime/2014 ... e-a-chord/
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Re: Foxconn International 2038

Postby behappyalways » Thu Jun 04, 2015 12:40 pm

鴻海深圳iPhone廠內鬼
報廢電池運港賤賣
http://hk.apple.nextmedia.com/internati ... 1433299518
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Re: Foxconn International 2038

Postby behappyalways » Sat Sep 05, 2015 3:04 pm

Hon Hai: Kicking the Apple addiction

The Taiwanese firm strives to avoid over-dependence on its main client

INSIDE an obscure warehouse in the southern Chinese city of Shenzhen, the robot revolution is under way, but it is far from glamorous. The test lab is hot, steamy and a bit dusty. Dozens of giant, aquamarine-coloured units are whirring and gyrating in patterns designed to test their endurance as they do polishing, machining and assembly. And forget about artificial intelligence: these tireless drudges will not move autonomously or learn by doing.

“We are a business,” explains Day Chia-Peng of the robotics group at Foxconn, the contract-manufacturing arm of Hon Hai of Taiwan. And his frugal bosses will not pay for his team to make flashy kit that does not add value.

Foxconn says it already has more than 30,000 robots in use, including thousands at a factory in Chengdu that has fewer than 100 workers. Besides making bespoke robots in-house, the firm has also invested $118m in a division of Softbank, the Japanese firm that makes Pepper, an advanced automaton (pictured).

The push into robotics as a producer, not just a user, is just one part of Hon Hai’s strenuous attempts to diversify. Foxconn is so good at high-quality, high-volume manufacturing that it has long been the contractor of choice for Apple, which provides around half of the Taiwanese firm’s revenues.

However, the American tech giant is trying to reduce its reliance on Foxconn, which once made 90% of the firm’s handheld devices but now makes perhaps two-thirds of them.

So, Hon Hai has been trying lots of new things. Its latest effort is in chip-packaging, a profitable business that bundles semiconductors into products like wearable bands and smart watches. On August 28th it said it would take a 21.2% stake in Siliconware Precision Industries (SPIL), a Taiwanese chip-packager, which in return will get a 2.2% stake in Hon Hai.

Their agreement thwarted an effort by another compatriot, Advanced Semiconductor Engineering (ASE), to take a big stake in SPIL. ASE has said that it has not yet given up.

Last month Foxconn agreed to invest $5 billion to build an electronics factory in India—giving little detail on what it would make—and hinted that it might open up a dozen more across the country. Hon Hai is also said to be in talks to take a stake in a division of Sharp, an ailing Japanese firm that makes liquid-crystal displays (LCDs), or to form a joint venture with it. A deal in 2012 between the two parties fell through.

Nicolas Baratte of CLSA, a stockbroker, says branching out makes sense for the group. Foxconn, which is 95% of Hon Hai’s core business, has margins below 4%. Over-reliance on Apple is not its only problem. Around two-fifths of Foxconn’s revenues come from making servers and networking equipment for just a few firms, such as Cisco, Juniper, HP, Huawei and Dell. “It’s maxed out its market share in this area, too,” Mr Baratte says.

But diversifying successfully is not easy. Moving into chip-packaging seems sensible, but ASE, assuming it cannot unpick Hon Hai’s deal with SPIL, will be a formidable rival, and margins may well fall. Getting into other semiconductor-heavy sectors, such as LCDs, could in theory bring higher margins, but in practice Sharp has bled red ink.

Entering factory automation also seems a good way to add value, but Mr Baratte thinks the mass manufacturer is not capable of selling customised bits of kit to thousands of small customers. “Today, it has just fifteen big clients,” he says.

Still, at least all these efforts have some connection with Hon Hai’s core capabilities. Some of its other initiatives do not. It has made a big push into mass-market retailing in China and Taiwan, which has not taken off. It has splashed out to win a 4G mobile-telecoms licence in Taiwan, on the dubious ground that this would help it sell equipment to telecoms providers. It has been throwing money at e-commerce ventures without a clear strategy. It even has plans to start making solar panels.

Alberto Moel of Sanford C. Bernstein, a research firm, calls these efforts “diworsification,” and urges the firm to stick to deals that have industrial logic. He points out that the biggest success Hon Hai has had so far in cutting its reliance on Apple has come from making handsets for the American firm’s rising Chinese rival, Xiaomi.

Source: The Economist
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Re: Foxconn International 2038

Postby winston » Thu Sep 24, 2015 1:35 pm

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<Research Report>HSBC Maintains FIH(02038.HK) at Buy with Target Cut to $4.9

HSBC, in its report, mentioned that FIH (02038.HK) can benefit from India's policy of lifting import duties (from 6.5% to 12.5%).

FIH started production in India from July, with a monthly capacity of approximately 1 million mobile phones.

Its major clients are Xiaomi and Asus.

FIH expected the Indian business can account for 5% to 10% of the total turnover in the second half of 2015.

However, FIH's short-term outlook will be affected by the weakened demand from Xiaomi.

Due to the competition, Xiaomi's shipment in the first half of 2015 was 34 million units and the figure in the second half should be similar.

HSBC believed the previous full-year shipment forecast of 75 million units for Xiaomi was too optimistic.

The broker reduced the target price of FIH from $5.4 to $4.9 but reiterated its rating at Buy.

Source: AAStocks Financial News
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Re: Foxconn International 2038

Postby winston » Fri May 06, 2016 10:00 am

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FIH Expects Jan-Jun Consolidated Net Profit Down 84%-92%

FIH (02038.HK) issued a profit warning, expecting the interim results of the group for the six months ending 30 June 2016 to record a consolidated net profit, which is expected to range from US$10-20 million, when compared to the group?s consolidated net profit of US$129 million for the six months ended 30 June 2015, representing a substantial decrease by 84.4%-92.2%.

The expected consolidated net profit is primarily attributable to lower demands from some of the group's major customers as a result of customer transition thus resulting in lower sales of the group?s products, and the decline in the group?s gross profit as a result of decrease of sales; and lower other income like service fees and molding sales from these customers.

Source: AAStocks Financial News
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Re: Foxconn International 2038

Postby winston » Fri May 06, 2016 11:14 am

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FIH Tumbles 19%; Downgraded to Underweight by M Stanley for Sharp Drop of Interim Profit

Credit Suisse cut the target price of FIH (02038.HK) to $3.1 after the company had issued a profit warning. Morgan Stanley downgraded the company to Underweight.

The shares opened with a downside gap of 12% this morning, losing 100-day MA ($3.05) with surge of selling orders.

It once hit the trough of $2.55, an over-three-year low, even below the low level of $2.56 in February. It last stood at $2.57, tumbling 19%, on volume surging to 27.29 million shares.

FIH issued a profit warning and said the expected substantial decrease of 84%-92% in the interim net profit is primarily attributable to lower demands from some of the group?s major customers as a result of customer transition thus resulting in lower sales of the group?s products, and the decline in the group?s gross profit as a result of decrease of sales; and lower other income like service fees and molding sales from these customers.

Source: AAStocks Financial News
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Taiwan - Stocks

Postby behappyalways » Wed Jun 22, 2016 12:07 pm

apple-secrecy-is-a-transparent-excuse-for-foxconn-s-gou
http://www.bloomberg.com/gadfly/article ... conn-s-gou
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