Fri, Oct 12, 2018 - Page 12 News List

Hon Hai’s monthly sales increase by nearly 50%

ELECTRONICS:Pegatron and Compal reported revenue growth last month compared with a month earlier, while Quanta reported a drop due to a shift in its product mix

By Ted Chen  /  Staff reporter

Hon Hai Precision Industry Co (鴻海精密) yesterday reported that sales last month rose 47.42 percent month-on-month to NT$584.93 billion (US$18.81 billion), driven by strong growth in the consumer electronics sector.

The world’s largest contract electronics manufacturer, which has been tapped to assemble the lion’s share of this year’s OLED iPhones, said that computing products ranked second in terms of revenue contribution, followed by communication products.

Last month’s results were the second highest for the month of September and pushed aggregate revenue for the past quarter to NT$1.37 trillion, 27.6 percent higher than the previous quarter to mark a record high for the period.

Aggregate revenue in the first nine months rose 17.1 percent annually to NT$3.48 billion, also a new high for the same period.

Meanwhile, rival Pegatron Corp (和碩) reported that revenue last month grew 22.1 percent month-on-month to NT$119.92 billion, but fell 21.92 percent compared with a year earlier.

The company, which is a major assembler of LCD iPhones, saw its third-quarter revenue rise 18.73 percent from the previous quarter to NT$322.08 billion, but the increase was significantly slower than the 39.79 percent gain seen over the same period last year.

Pegatron could see revenue growth as the iPhone XR is launching later this month, but the company is still constrained by an ongoing shortage of labor, analysts have said.

Revenue in the first nine months rose 7.1 percent annually to NT$874.16 billion, company data showed.

Meanwhile, the launch of the Apple Watch was not a major factor in driving revenue growth last month for Quanta Computer Inc (廣達) and Compal Electronics Inc (仁寶).

Compal reported that revenue last month rose 8.5 percent month-on-month and 9 percent year-on-year to NT$89.99 billion, while its top line in the past quarter rose 6.52 percent to NT$253.4 billion from the second quarter.

Compal said that non-PC revenue grew less than 20 percent, lower than its target of between 30 and 40 percent.

Quanta’s revenue dipped 6.2 percent from a month earlier and 5.9 percent from a year earlier to NT$711.31 billion.

The company said it attributed the decline to a shift in its product mix.

Quanta reported that third-quarter revenue rose 35.5 percent quarter-on-quarter and 2.16 percent year-on-year to NT$282.15 billion.

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