Sat, Aug 11, 2012 - Page 14 News List

Hon Hai sales boosted by high consumer demand

Staff writer, with CNA

Hon Hai Precision Industry Co (鴻海), the world’s largest contract electronics maker, yesterday reported a 5 percent increase in non-consolidated sales for last month on the back of solid demand for consumerelectronics products.

Last month’s sales data, which was released before the local bourse opened, triggered buying in Hon Hai shares to boost the stock by 3.69 percent as it closed at NT$84.40.

Hon Hai Precision said it posted NT$248.70 billion in non-consolidated sales, up from NT$236.83 billion recorded in June. The figure rose 8.39 percent from a year earlier. In the first seven months, the company’s non-consolidated sales totaled NT$1.77 trillion, up 24.76 percent from a year ago.

Last month, Hon Hai benefited from rising demand for consumer electronics products such as Apple’s gadgets, while sales of PCs and related products appeared slow, dealers said.

Hon Hai Precision manufacturers the iPhone and iPad for Apple, which account for more than 40 percent of the firm’s sales, according to Grand Cathay Securities (大華證券).

Grand Cathay Securities analyst Mars Hsu (徐振家) said the higher sales posted by Hon Hai last month and other local firms in the Apple supply chain gave the market a strong hint that the US consumer-electronics giant will launch the long-awaited iPhone 5 next month, as the market has widely expected.

“It is possible for Hon Hai Precision shares to continue to increase on the back of an optimisitc sales outlook, but the stock may face strong technical resistance at around NT$90,” Hsu said.

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