Hon Hai Boasts Exceptional Profit Performance in Q3

Hon Hai Precision, Taiwan's leading manufacturer, raked in after-tax net profit of NT$30.256 billion in the third quarter, up 140% sequentially and 57% year-on-year, with after-tax net profit per share reaching NT$2.57, higher than NT$2.33 for the first half, according to the third-quarter report released by the company yesterday (Oct. 30). Market players are upbeat over the company's performance in the fourth quarter, thanks to shipment of Apple's new products and the entry into busy season from October.

The company's performance in the third quarter is exceptional, although its non-consolidated revenue in the quarter decreased 2.6% sequentially to NT$711.06 billion.

The company boasted after-tax net profit of NT$57.789 billion in the first three quarters this year, up 24% year-on-year, with EPS (earnings per share) topping NT$4.9.

The company's non-consolidated gross margin in the third quarter stood at 5%, down 2.93 percentage points from 7.93% in the second quarter. Hon Hai noted that the non-consolidated gross margin can only be treated as a reference, since it will publicize its consolidated quarterly report on November 15.

Hon Hai attributed its remarkable profit performance in the third quarter to three major factors: better product lineup and higher production efficiency, no need to pay tax on retained earnings in the quarter, and NT$4.5 billion of returned interest from loss listed for investments in Sharp.

Hon Hai's after-tax net profit in the third quarter soared 139.94% sequentially to NT$30.256 billion, with EPS amounting to NT$2.57, compared with NT$0.94 in the second quarter.

Foreign investors overbought 1,274,000 shares of Hon Hai stock yesterday, reversing overselling of 162,000 shares in the 19 consecutive trading sessions as of October 29. The company's share price rose NT$4, closing at NT$88 yesterday.

source & copyright: CENS