Foxconn Industrial Internet Co Ltd (FII, 富士康工業互聯網), a unit of the world’s largest contract manufacturer, yesterday became China’s biggest domestically listed tech company by market cap as its shares soared by the maximum 44 percent on their debut on the Shanghai Stock Exchange.
The China based Internet subsidiary of Hon Hai Precision Industry Co (鴻海精密) opened about 20 percent higher than the initial public offering (IPO) price of 13.77 yuan at 16.52 yuan, quickly climbing to 19.83 yuan.
With its strong start, FII saw its market capitalization rise from 271.2 billion yuan (US$42.3 billion) to more than 390.5 billion yuan, edging out video surveillance product supplier Hangzhou Hikvision Digital Technology Co (杭州海康威視數字技術) as the tech stock with the largest market cap among yuan-denominated A-shares listed in Shanghai and Shenzhen.
Photo: Reuters
Investors have been upbeat about FII’s future movement on the Shanghai Stock Exchange, anticipating that its market value would continue to increase, dealers said.
The optimism is based in part on FII’s strategic partnership with a group of Chinese business heavyweights to which it has issued new shares, dealers said.
The strategic partners include e-commerce giant Alibaba Group Holding Ltd (阿里巴巴), search engine Baidu Inc (百度) and online services provider Tencent Holdings Ltd (騰訊).
Photo: Reuters
FII’s listing is part of an effort by Hon Hai, known globally as Foxconn Technology Group (富士康), to integrate hardware production with software development capabilities, such as for cloud computing, Internet of Things, big data and artificial intelligence, with its contract electronics operations to expand beyond manufacturing.
FII’s IPO raised 27.12 billion yuan, which Hon Hai said is to be used for investment in its new software-based areas of interest in China.
On Thursday, FII reported a 19.78 percent year-on-year increase in consolidated sales in the first quarter of the year to 77.69 billion yuan and a 1 percent rise in profit from a year earlier to 2.63 billion yuan.
FII has forecast consolidated sales of between 146.06 billion yuan and 154.58 billion yuan for the first half of the year, a 6.8 to 13.1 percent year-on-year increase.
It has also projected a first-half net profit of between 5.35 billion yuan and 5.56 billion yuan, an increase of 0.6 to 4.5 percent from a year earlier.
After the IPO, Hon Hai retains an 84.8 percent stake in FII, which has serves global heavyweights such as Amazon.com Inc, Apple Inc, Dell Inc, Aris International PLC, Huawei Technologies Co (華為) and Lenovo Group Ltd (聯想).
China’s economic planning agency yesterday outlined details of measures aimed at boosting the economy, but refrained from major spending initiatives. The piecemeal nature of the plans announced yesterday appeared to disappoint investors who were hoping for bolder moves, and the Shanghai Composite Index gave up a 10 percent initial gain as markets reopened after a weeklong holiday to end 4.59 percent higher, while Hong Kong’s Hang Seng Index dived 9.41 percent. Chinese National Development and Reform Commission Chairman Zheng Shanjie (鄭珊潔) said the government would frontload 100 billion yuan (US$14.2 billion) in spending from the government’s budget for next year in addition
Advanced Micro Devices Inc (AMD) suffered its biggest stock decline in more than a month after the company unveiled new artificial intelligence (AI) chips, but did not provide hoped-for information on customers or financial performance. The stock slid 4 percent to US$164.18 on Thursday, the biggest single-day drop since Sept. 3. Shares of the company remain up 11 percent this year. AMD has emerged as the biggest contender to Nvidia Corp in the lucrative market of AI processors. The company’s latest chips would exceed some capabilities of its rival, AMD chief executive officer Lisa Su (蘇姿丰) said at an event hosted by
AVIATION: Despite production issues in the US, the Taoyuan-based airline expects to receive 24 passenger planes on schedule, while one freight plane is delayed The ongoing strike at Boeing Co has had only a minor impact on China Airlines Ltd (CAL, 中華航空), although the delivery of a new cargo jet might be postponed, CAL chairman Hsieh Su-chien (謝世謙) said on Saturday. The 24 Boeing 787-9 passenger aircraft on order would be delivered on schedule from next year to 2028, while one 777F freight aircraft would be delayed, Hsieh told reporters at a company event. Boeing, which announced a decision on Friday to cut 17,000 jobs — about one-tenth of its workforce — is facing a strike by 33,000 US west coast workers that has halted production
TECH JUGGERNAUT: TSMC shares have more than doubled since ChatGPT’s launch in late 2022, as demand for cutting-edge artificial intelligence chips remains high Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday posted a better-than-expected 39 percent rise in quarterly revenue, assuaging concerns that artificial intelligence (AI) hardware spending is beginning to taper off. The main chipmaker for Nvidia Corp and Apple Inc reported third-quarter sales of NT$759.69 billion (US$23.6 billion), compared with the average analyst projection of NT$748 billion. For last month alone, TSMC reported revenue jumped 39.6 percent year-on-year to NT$251.87 billion. Taiwan’s largest company is to disclose its full third-quarter earnings on Thursday next week and update its outlook. Hsinchu-based TSMC produces the cutting-edge chips needed to train AI. The company now makes more
RSS