Hon Hai Precision Industry Co Ltd (鴻海精密) yesterday posted 14.62 percent monthly growth in unconsolidated revenue last month, boosted by robust sales of Apple Inc’s iPhones and iPads.
Revenue expanded to NT$275.7 billion (US$9.5 billion) last month, compared with NT$240.54 billion a month earlier. On an annual basis that represents a decline of 6.71 percent from NT$295.54 billion. Hon Hai attributed the growth to strong demand for consumer electronics.
“The figure is largely in line with our expectations,” said Birdy Lu (呂家霖), an analyst with Daiwa Capital Markets, who forecast a monthly increase of between 13 percent and 17 percent for Hon Hai’s sales last month.
Lu said Hon Hai’s revenue would likely grow further this month and hold steady next month if the firm makes a break-through in ramping up production of Apple products. That would be in contrast to the normal seasonal pattern as revenue usually dips next month, he said.
Lu forecast that Hon Hai would post 20 percent sequential growth in revenue this quarter from NT$711 billion last quarter, due to strong demand for Apple’s iPhone 5 and iPad Mini, according to a report released earlier this month.
Lu rated Hon Hai as “buy” with a six-month target price of NT$120, implying about a 31 percent rise from the stock’s closing price of NT$91.4 yesterday.
In the first 10 months of the year, Hon Hai accumulated NT$2.51 trillion in unconsolidated revenue, up 16.65 percent from NT$2.15 trillion in the same period last year.