Hon Hai's Earnings Estimated at $2.6B for 2007
Feb 14, 2008
Some foreign institutional investors estimated the Hon Hai Industry Precision Co., Ltd. to earn net profits of NT$85 billion (US$2.6 billion at US$1:NT$32) or NT$13 per share, last year, making it the world's most profitable electronic-manufacturing service provider.
Throughout last year, the Taiwan's No.1 manufacturing conglomerate by revenue, raked in revenue of NT$1.24 trillion (US$38.7 billion), a new high in the company history.
Innolux Display Corp. and Foxconn Technology Co., Ltd., two of Hon Hai's iconic subsidiaries, are estimated to see their revenue for last year increase 48.3% and 72.08%, respectively. Some institutional investors estimated both subsidiaries' 2007 earnings to likely equal to their own each registered capital, with Innolux's projected at NT$15 billion (US$468 million) while Foxconn's put at NT$5.6 billion (US$175 million).
Some foreign institutional investors fear Hon Hai's sales growth will likely slow down as a result of its over focus on manufacturing of personal computers, communications gears and consumer electronics as well as mainland China's latest decreed law governing labor-management contract. However, some thinks Apple may contract Hon Hai to make its Apple TV and next-generation iPhone and Japanese LCD-TV makers may increase outsourcing the pure manufacturers like Hon Hai this year, raising the likelihood that Hon Hai will attain goal of maintaining 30% revenue growth this year, to NT$1.56 trillion (US$48 billion).