Hon Hai (2317) was affected by the Zhengzhou epidemic. In November, it was cut by foreign investors by up to 205,000. The tsunami of foreign investor sell-offs has been completely inexorable. The number of sales in a single month surpassed that of Hon Hai. The largest number of super-sales in a month, but Hon Hai resisted 100 yuan for more than 30 days. Today (1), encouraged by the soaring Taiwan stock, the high point reached 103 yuan, a new maximum in the last month.
Hon Hai’s Zhengzhou factory staged a complete breakout after the end of October. Hon Hai has urgently released a series of measures to encourage employees to return to work. The situation and the difficulties encountered by the factory. But such propaganda has no effect on foreign capital. Foreign capital cut 205,000 Hon Hai shares in November, which was also the largest overselling in a single month this year. However, Hon Hai’s share price it is kept at 100 yuan, with the lowest being just 99.5 yuan, quite solid.
Today, as the US Federal Reserve sang its doves, Taiwan’s stocks soared. Hon Hai took advantage of the trend and gained 2 yuan in early trading, reaching a high of 103 yuan, which was the highest point in the last month. circumstances, the shareholders finally waited until the “Taiwan equity real estate” started to move and shook off the haze that the iPhone could be transferred to order.
Hon Hai chairman Liu Yangwei stressed at the legal conference a few days ago that the fourth quarter is expected to grow compared with the third quarter and remain the same as the same period last year. Among them, even if the consumer smart products affected by the epidemic situation in the Zhengzhou plant, it is expected to grow again compared to the previous quarter; Overall, growth will continue throughout the year. Liu Yangwei pointed out that the three main variables of inflation, epidemic situation and international political and economic situation will still exist next year. In addition, the economic outlook for the electronics industry will be revised downwards. However, since Hon Hai’s products are unique and have many high-end products, are less affected by the economic climate. The overall ICT business is neutral.
Hon Hai’s gross profit margin is affected by factors such as product mix and epidemic prevention of the Zhengzhou factory in the short term, but continues to move towards the medium-term gross profit margin target of 7 % and a gross profit margin of 10% in 2025. Liu Yangwei revealed that next year will be a very critical year for Hon Hai in the electric vehicle industry. There is also a potential EV customer from a traditional car factory. Additionally, Ceer, which was founded with PIF in Saudi Arabia, is expected to see input from vehicle design and software next year.
A few days ago, the Asia Department’s foreign investment report was titled “Preparing for a Rebound.” Managing 1 million employees is no easy task for any company. When the Zhengzhou factory got back on track and got production back on track, I believe the worst situation is over. Optimistic about the stock’s bullishness, they reiterate their BUY rating.
further reading
Electric cars are so fragrant! More than 1,500 Taiwan manufacturers vie for the $580 billion pie
-
Zhang Jiahao, Yahoo Finance special correspondent: He began his career in the securities group of the Industrial and Commercial Times, serving as a member of the writing committee, responsible for securities authorities, the securities market and the technology industry. Later, loving to study factories and industries, he devoted himself to commercial operations. He looks at events from the media’s perspective, looks at the industry from the PM’s perspective, and provides readers with more news perspectives.
