Hon Hai Precision Industry Co (鴻海精密), which makes iPhones and iPads for Apple Inc, yesterday saw its sales rise by a faster-than-expected 12.05 percent last month, likely resulting in a slight increase in sales this quarter.
Revenue climbed to NT$291.76 billion (US$9.79 billion) last month, compared with NT$260.38 billion in March, supported by resilient demand for consumer electronics. However, it was down 5.08 percent from NT$307.37 billion in April last year.
“The figure beat most analysts’ expectations,” Daiwa Capital Markets analyst Birdy Lu (呂家霖) said by telephone. “That will make it possible for Hon Hai to report growth in revenue in the second quarter.”
Most analysts forecast Hon Hai would see revenue decline this quarter after Apple said it expected its revenue to drop between 19 percent and 23 percent for the current quarter, Lu said.
Lu previously predicted Hon Hai’s revenue would be flat this quarter from last quarter’s NT$808.97 billion.
He has a "buy" rating on Hon Hai, with a target price of NT$112, implying 39 percent upside from its closing price of NT$80.50 yesterday.
Hon Hai accumulated NT$1.1 trillion in revenue during the first four months of the year. That was down 15.89 percent from NT$1.31 trillion in the same period last year.