AI demand strong, Hon Hai May revenue hits historical high for the same period

Wallstreetcn
2024.06.05 10:04
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Hon Hai indicated that the second quarter still belongs to the traditional off-season, with main products in the transition period between old and new products. However, due to AI server demand exceeding expectations, the performance in the second quarter is expected to exceed market expectations, achieving a relatively strong quarter-on-quarter growth

Thanks to strong AI server demand, Hon Hai Precision Industry Co., Ltd., the parent company of Foxconn, achieved a historical high in May revenue.

On Wednesday, Hon Hai announced its latest performance, with May sales increasing by 22.1% year-on-year to NT$550.16 billion (approximately RMB 123.24 billion), exceeding market expectations and reaching the highest level for the same period in history. Hon Hai's May revenue increased by 7.7% month-on-month.

Looking at different business segments, computing products and cloud computing and networking products showed strong growth month-on-month, while components and smart consumer electronics products remained stable.

Computing Products: Revenue in May showed strong growth month-on-month thanks to the launch of new products.

Cloud Computing and Networking Products: Revenue in May saw a significant increase month-on-month due to strong demand for AI servers.

Components and Other Products: Shipments of components related to core businesses increased, while demand for non-core businesses decreased. Revenue in May remained stable month-on-month.

Smart Consumer Electronics Products: Revenue in May remained stable month-on-month.

Hon Hai's Taiwan stock price rose by over 2.6% on Wednesday, with a year-to-date increase of over 76%.

In terms of guidance, Hon Hai stated that the second quarter still belongs to the traditional off-season, with major products in the midst of transitioning from old to new products. However, due to AI server demand surpassing expectations, second-quarter performance is expected to exceed market expectations, achieving a relatively strong month-on-month growth.

For the first five months of 2024, Hon Hai's accumulated revenue was NT$238.32 billion, a year-on-year increase of 1.7%. Cloud computing and networking products, as well as components, showed strong growth; computing products also grew significantly, while smart consumer electronics products saw a slight decline.

Hon Hai will release its June revenue report on July 5th

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