Hon Hai Precision Industry Co (鴻海精密), the world’s biggest contract maker of electronics, posted its first profit increase in five quarters, beating analysts’ estimates.
Second-quarter net income rose 27 percent to NT$15.1 billion (US$459 million) from a year earlier. The number was derived from first-half results announced by the Taipei-based company yesterday.
Hon Hai was expected to report profit of NT$11.7 billion, according to the median of 10 analyst estimates compiled by Bloomberg.
Customers including Apple Inc posted rising sales during the April-to-June period, boosting revenue at the Taipei-based company as demand for consumer electronics rebounded. Hon Hai’s profit will decline this quarter, according to analysts’ estimates.
“Hon Hai can maybe boost profit margins if they have a more favorable product mix,” Calvin Huang (黃文堯), an analyst at Daiwa Securities Group Inc (大華證券) in Taipei who rates the company “buy,” said before the earnings announcement.
Sales were little changed from a year earlier at NT$314 billion on an unconsolidated basis, according to Bloomberg’s calculations based on the company’s first-half results.
Hon Hai closed unchanged at NT$111 in Taipei trading before the earnings announcement. The stock has surged 99 percent this year, compared with a 49 percent advance by the benchmark TAIEX index.
HIGHER APPLE SALES
Apple, whose iPods, Mac computers and iPhones are made by Hon Hai, posted a 12 percent increase in sales for the June quarter after it lured customers with price cuts.
Global computer shipments dropped 3.1 percent in the second quarter, better than an expected decline of 6.3 percent, researcher IDC said in a July 15 statement. Consumers’ purchases of PCs buoyed the market, the researcher said.
Hon Hai is expected to post a 15 percent drop in profit this quarter from a year earlier to NT$15.1 billion, the median of eight analyst estimates compiled by Bloomberg showed.
BIG BUCKS: Chairman Wei is expected to receive NT$34.12 million on a proposed NT$5 cash dividend plan, while the National Development Fund would get NT$8.27 billion Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday announced that its board of directors approved US$15.25 billion in capital appropriations for long-term expansion to meet growing demand. The funds are to be used for installing advanced technology and packaging capacity, expanding mature and specialty technology, and constructing fabs with facility systems, TSMC said in a statement. The board also approved a proposal to distribute a NT$5 cash dividend per share, based on first-quarter earnings per share of NT$13.94, it said. That surpasses the NT$4.50 dividend for the fourth quarter of last year. TSMC has said that while it is eager
‘IMMENSE SWAY’: The top 50 companies, based on market cap, shape everything from technology to consumer trends, advisory firm Visual Capitalist said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) was ranked the 10th-most valuable company globally this year, market information advisory firm Visual Capitalist said. TSMC sat on a market cap of about US$915 billion as of Monday last week, making it the 10th-most valuable company in the world and No. 1 in Asia, the publisher said in its “50 Most Valuable Companies in the World” list. Visual Capitalist described TSMC as the world’s largest dedicated semiconductor foundry operator that rolls out chips for major tech names such as US consumer electronics brand Apple Inc, and artificial intelligence (AI) chip designers Nvidia Corp and Advanced
Saudi Arabian Oil Co (Aramco), the Saudi state-owned oil giant, yesterday posted first-quarter profits of US$26 billion, down 4.6 percent from the prior year as falling global oil prices undermine the kingdom’s multitrillion-dollar development plans. Aramco had revenues of US$108.1 billion over the quarter, the company reported in a filing on Riyadh’s Tadawul stock exchange. The company saw US$107.2 billion in revenues and profits of US$27.2 billion for the same period last year. Saudi Arabia has promised to invest US$600 billion in the US over the course of US President Donald Trump’s second term. Trump, who is set to touch
SKEPTICAL: An economist said it is possible US and Chinese officials would walk away from the meeting saying talks were productive, without reducing tariffs at all US President Donald Trump hailed a “total reset” in US-China trade relations, ahead of a second day of talks yesterday between top officials from Washington and Beijing aimed at de-escalating trade tensions sparked by his aggressive tariff rollout. In a Truth Social post early yesterday, Trump praised the “very good” discussions and deemed them “a total reset negotiated in a friendly, but constructive, manner.” The second day of closed-door meetings between US Secretary of the Treasury Scott Bessent, US Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng (何立峰) were due to restart yesterday morning, said a person familiar
RSS