Managing Director, Zero One, Zero One

Vincent Fernando, CFA

20 years of experience researching capital markets in Asia and the USA.

Managing Director, Zero One

Taiwan Tech Weekly: Buffet Invests in TSMC, Hon Hai Issues Improving, China Chip Imports Slump

Buffett's Investment in TSMC - Impact on Samsung Electronics and SK Hynix

Intel Vs. TSMC Monitor: TSMC Soars on Buffett Investment, Why INTC Could Now Revert

Hon Hai: U.S. Chip Restrictions Vs. China Have Put Hon Hai in a Stronger Than Ever Position

Foxconn / Hon Hai: Quick-Take On The Zhengzhou Outbreak; Accumulate on Weakness

Taiwan Tech Weekly: Hon Hai U.S. Listco EV Deal, Germany Likely to Block China Co's Factory Purchase

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Equity Bottom-Up

Hon Hai Precision Industry / Equity Bottom-Up

<ul>
<li>Hon Hai Precision Industry (2317 TT) reported 3Q22 EPS of NT$2.80 yesterday, below consensus estimates of NT$2.95, partly due to gross margin falling QoQ.</li>
<li>The company emphasized that 4Q22E could be impacted by Zhengzhou issues, but would be short-term in nature. It still aims to achieve a 10% gross margin by 2025.</li>
<li>EV business continues to expand and shares are trading near lower-end of their recent trading range.</li>
</ul>


Hon Hai Precision Industry (2317 TT) reported 3Q22 EPS of NT$2.80 yesterday, below consensus estimates of NT$2.95, partly due to gross margin falling QoQ.
The company emphasized that 4Q22E could be impacted by Zhengzhou issues, but would be short-term in nature. It still aims to achieve a 10% gross margin by 2025.
EV business continues to expand and shares are trading near lower-end of their recent trading range.


Hon Hai 3Q22 Results Call: Indicates COVID Issue Manageable, Maintains LT Margin Expansion Target