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Hon Hai Reports Strong Q2 Revenue Growth, Driven by AI and Automotive Demand

June revenue hits NT$490.7 billion, with notable annual increase and optimistic outlook for H2 2024
Taiwan
f 2317.TW Blue Chip 150 OM 60 Tech 350
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Foxconn (Hon Hai Precision Industry) reported robust revenue figures for June, reaching NT$490.7 billion, marking a 10.8% monthly decline but a 16% year-on-year increase. This revenue is the second highest for the month in the company’s history. For the second quarter, Hon Hai’s revenue soared to NT$1.55 trillion, reflecting a 17.3% quarterly increase and a 19.1% annual rise, significantly surpassing company expectations.

Cumulative revenue for the first half of the year totaled NT$2.87 trillion, an annual increase of 3.9%, also the second highest for this period historically. With the peak season approaching, Hon Hai anticipates continued operational growth in the third quarter, both on a quarterly and annual basis.

Despite the positive financial performance, Hon Hai’s stock price closed at NT$214.5, with a trading volume of 42,900 shares, as the three major institutional investors sold more than 11,800 shares. The company is scheduled to hold a press conference on August 14 to announce detailed financial results for the second quarter and first half of the year, and to provide an outlook for the latter half of 2024.

A significant driver of Hon Hai’s Q2 success was the strong performance in the “Cloud Network Product Category,” fueled by increased demand for AI cloud products. While components and other product categories saw a slight monthly decline, the “Computer Terminal Product Category” and “Consumer Smart Product Category” also experienced monthly declines but posted strong annual growth.

The legal person noted that Hon Hai’s ability to capitalize on growth opportunities in the AI server industry and expand its market share significantly contributed to its impressive performance. The “Cloud Network Product Category” and “Components and Other Product Categories” showed strong growth, driven by AI server demand, component business, and automotive product shipments.

Looking ahead, Hon Hai expects its operations to continue heating up in the second half of the year, driven by new product launches and sustained demand in key sectors. The company’s diversified growth strategy positions it well to navigate the evolving market dynamics and capitalize on emerging opportunities in the AI and automotive industries.

 

 

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