Hon Hai Precision Industry Co (鴻海精密), which assembles iPhones and iPads for Apple Inc, yesterday said robust demand for computers, servers and communications components boosted its revenue to grow 18.22 percent to NT$307.82 billion (US$10.22 billion) last month from NT$260.63 billion in February.
In the January-to-March period, cumulative revenue contracted 22.39 percent to NT$883 billion from the previous quarter’s NT$1.14 trillion, as demand usually weakens in the first three months of a year, the company said.
The first-quarter figure fell short of the estimate of Fubon Securities Co (富邦證券) analyst Kevin Liao (廖顯毅), who predicted that Hon Hai would post NT$1.03 trillion in revenue for last quarter.
Liao is more optimistic about the company’s business outlook in the second half of the year, as Hon Hai is expected to be the major iPhone 6 assembler globally.
Hon Hai is forecast to start shipping Apple’s new iPhone 6 next quarter, which will help fuel growth and further boost the company’s revenue to reach NT$4.41 trillion during the quarter, he said.
The company is likely to produce 30 million iPhone units next quarter and the volume will double to 60 million units in the final quarter this year, he added.
Fubon has an “add” rating on Hon Hai’s shares, with a target price of NT$101, implying a more than 16 percent upside from the stock’s closing price of NT$86.8 yesterday.