FIH Mobile Ltd (富智康), assembler of Xiaomi Corp (小米) smartphones, surged the most in three months in Hong Kong trading yesterday after forecasting that profit would more than double.
The stock climbed 11.6 percent to an intraday high of HK$5, the most since March 20, before retreating to close at HK$4.78, up 6.7 percent from Wednesday.
FIH Mobile, a unit of Foxconn Technology Group (富士康科技集團), has seen its profits surge, as fast-growing Chinese smartphone vendors, such as Xiaomi and Huawei Technologies Co (華為), rely on the company’s factories to produce their devices.
Photo: David Chang, EPA
The manufacturer also expects to assemble its first Indian-made smartphone this year and to set up multiple plants in the country.
Stronger component sales, mostly driven by metal casings used by Chinese smartphone makers, are also helping the company’s earnings, Andrew Lin and Xia Xiao at China International Capital Corp (CICC, 中金公司) wrote in a note to clients.
FIH’s margins should expand, as the company has upgraded to produce higher value components, they wrote.
CICC raised its rating on the stock to “conviction buy,” from “buy.”
Net income is forecast to reach between US$120 million and US$135 million for the six months ending June 30, the company said in a statement to the Hong Kong Stock Exchange on Wednesday. That is as much as 20 percent higher than the average of analysts’ estimates compiled by Bloomberg.
First-half sales are expected to surge 64 percent to more than US$3.75 billion, FIH said in the statement, compared with analysts’ average estimate of US$3.4 billion. Gross profit is predicted to rise 59 percent to about US$225 million, it said.
New clients such as Guangdong Oppo Electronics Co (廣東歐珀), OnePlus (一加) and India’s Micromax Informatics are helping offset a slowdown at former mainstays such as Nokia Oyj and Sony Corp, FIH chairman Vincent Tong (童文欣) said in an interview last month.
Taipei-based Hon Hai Precision Industry Co (鴻海精密), the largest member of Terry Gou’s (郭台銘) Foxconn Technology Group, owns about 70 percent of FIH.
Napoleon Osorio is proud of being the first taxi driver to have accepted payment in bitcoin in the first country in the world to make the cryptocurrency legal tender: El Salvador. He credits Salvadoran President Nayib Bukele’s decision to bank on bitcoin three years ago with changing his life. “Before I was unemployed... And now I have my own business,” said the 39-year-old businessman, who uses an app to charge for rides in bitcoin and now runs his own car rental company. Three years ago the leader of the Central American nation took a huge gamble when he put bitcoin
TECH RACE: The Chinese firm showed off its new Mate XT hours after the latest iPhone launch, but its price tag and limited supply could be drawbacks China’s Huawei Technologies Co (華為) yesterday unveiled the world’s first tri-foldable phone, as it seeks to expand its lead in the world’s biggest smartphone market and steal the spotlight from Apple Inc hours after it debuted a new iPhone. The Chinese tech giant showed off its new Mate XT, which users can fold three ways like an accordion screen door, during a launch ceremony in Shenzhen. The Mate XT comes in red and black and has a 10.2-inch display screen. At 3.6mm thick, it is the world’s slimmest foldable smartphone, Huawei said. The company’s Web site showed that it has garnered more than
CROSS-STRAIT TENSIONS: The US company could switch orders from TSMC to alternative suppliers, but that would lower chip quality, CEO Jensen Huang said Nvidia Corp CEO Jensen Huang (黃仁勳), whose products have become the hottest commodity in the technology world, on Wednesday said that the scramble for a limited amount of supply has frustrated some customers and raised tensions. “The demand on it is so great, and everyone wants to be first and everyone wants to be most,” he told the audience at a Goldman Sachs Group Inc technology conference in San Francisco. “We probably have more emotional customers today. Deservedly so. It’s tense. We’re trying to do the best we can.” Huang’s company is experiencing strong demand for its latest generation of chips, called
Vanguard International Semiconductor Corp (世界先進) and Episil Technologies Inc (漢磊) yesterday announced plans to jointly build an 8-inch fab to produce silicon carbide (SiC) chips through an equity acquisition deal. SiC chips offer higher efficiency and lower energy loss than pure silicon chips, and they are able to operate at higher temperatures. They have become crucial to the development of electric vehicles, artificial intelligence data centers, green energy storage and industrial devices. Vanguard, a contract chipmaker focused on making power management chips and driver ICs for displays, is to acquire a 13 percent stake in Episil for NT$2.48 billion (US$77.1 million).
RSS