FIH Mobile (2038) AI Stock Analysis

• Market Cap: HK$12.44B
• Dividend Yield: N/A
• Average Volume (3M): 1.88M
• Price to Earnings (P/E): 97.0
• Beta (1Y): 1.21
• Revenue Growth: 3.21%
• EPS Growth: N/A
• Country: HK
• Employees: 31,568
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.06
• Shares Outstanding: 788,450,000
• 10 Day Avg. Volume: 2,030,698
• 30 Day Avg. Volume: 1,876,981
• PEG Ratio: 0.55
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 3.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$13.53
• Price Target Upside: -19.13% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: HK$13.50 ▼(-19.31% Downside)

The overall stock score of 59 reflects a mixed outlook. The strongest positive factor is the technical analysis, showing bullish momentum, though caution is advised due to overbought indicators. Financial performance presents significant challenges, especially with declining revenues and negative net income. Valuation metrics are unfavorable due to a negative P/E ratio and the absence of dividends. Strategic adjustments are necessary for financial improvement.

FIH Mobile Business Overview & Revenue Model

Company Description

FIH Mobile Limited, an investment holding company, provides integrated manufacturing services for the handset industry worldwide. It operates through three segments: Asia, Europe, and America. The company designs, manufactures, distributes, and trades handsets and communication products, as well as offers repair services. It is also involved in the research and development activity. The company was formerly known as Foxconn International Holdings Limited and changed its name to FIH Mobile Limited in May 2013. FIH Mobile Limited was incorporated in 2000 and is headquartered in New Taipei City, Taiwan. FIH Mobile Limited is a subsidiary of Foxconn (Far East) Limited.

How the Company Makes Money

FIH Mobile makes money primarily through its manufacturing services for mobile and wireless communication devices. The key revenue streams include contract manufacturing fees, which are earned by producing devices for major smartphone and telecom companies. Additionally, FIH Mobile generates income through design and development services, where it collaborates with clients to create customized mobile solutions. The company's earnings are significantly bolstered by strategic partnerships and long-term contracts with top-tier clients, ensuring a steady flow of projects and manufacturing orders.

FIH Mobile Financial Statement Overview

Summary

FIH Mobile faces challenges in revenue growth and profitability, evidenced by declining revenues and negative net income. The balance sheet shows strong liquidity but reduced equity, while cash flow improvements are offset by historical volatility. The company needs strategic adjustments to ensure long-term financial stability and growth.

Income Statement

FIH Mobile has faced significant revenue declines over recent years, with a notable drop from $14.38 billion in 2019 to $5.70 billion in 2024. Gross profit margin remains thin, and net income has been negative, reflecting challenges in profitability. Despite some improvement in EBITDA margin, EBIT has been negative, indicating operational difficulties.

Balance Sheet

The company maintains a strong liquidity position with substantial cash reserves, reducing net debt to negative levels. However, the debt-to-equity ratio is moderate at approximately 0.24, suggesting manageable leverage. Stockholders' equity has declined over the years, reflecting a decrease in total assets and equity ratio, potentially signaling long-term risk.

Cash Flow

Operating cash flow has shown improvement, particularly in 2024, indicating better cash generation from operations. However, free cash flow fluctuates significantly, reflecting inconsistency in capital expenditure management. The free cash flow to net income ratio is positive due to negative net income, highlighting reliance on operational efficiency.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.70B	6.45B	9.39B	8.58B	8.93B
Gross Profit	134.64M	109.82M	191.96M	224.41M	95.20M
EBITDA	126.25M	107.74M	135.32M	268.39M	59.48M
Net Income	-20.33M	-120.68M	-72.14M	56.33M	-173.84M
Balance Sheet
Total Assets	3.82B	4.32B	5.51B	5.98B	6.03B
Cash, Cash Equivalents and Short-Term Investments	1.69B	1.90B	1.85B	1.90B	1.79B
Total Debt	346.00M	707.65M	679.82M	880.67M	953.28M
Total Liabilities	2.36B	2.76B	3.72B	3.81B	3.95B
Stockholders Equity	1.46B	1.56B	1.78B	2.16B	2.08B
Cash Flow
Free Cash Flow	237.23M	9.48M	266.12M	162.51M	-190.64M
Operating Cash Flow	362.24M	102.66M	409.41M	281.31M	-88.91M
Investing Cash Flow	-220.91M	-40.09M	-126.96M	-87.14M	-11.72M
Financing Cash Flow	-428.53M	-37.13M	-214.02M	-110.88M	278.54M

FIH Mobile Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2038, the sentiment is Positive. The current price of 16.73 is above the 20-day moving average (MA) of 15.70, above the 50-day MA of 14.67, and above the 200-day MA of 10.33, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 61.69 is Neutral, neither overbought nor oversold. The STOCH value of 63.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2038.

FIH Mobile Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0763	79 Outperform	219.06B	20.11	11.57%	1.91%	3.16%	-19.51%
0303	74 Outperform	16.10B	13.06	24.33%	7.50%	1.05%	-6.29%
6869	70 Outperform	75.11B	66.94	5.81%	0.48%	12.11%	-44.33%
2018	69 Neutral	53.19B	22.34	7.90%	0.53%	30.73%	90.08%
2038	59 Neutral	HK$12.44B	97.04	1.16%	―	3.21%	―
2342	54 Neutral	10.03B	-25.45	-21.27%	0.19%	-13.99%	-32.74%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

FIH Mobile Corporate Events

FIH Mobile Announces Share Grant to Executives and Employees

FIH Mobile has announced the grant of 27,238,190 Award Shares, representing approximately 3.47% of its total issued shares, to key executives and employees under its Share Scheme. The vesting of these shares is subject to specific conditions and will occur over a period of three years, reflecting a strategic move to incentivize and retain talent within the company.

FIH Mobile Reports Profitable Turnaround in 2025 Interim Results

FIH Mobile announced its unaudited interim results for the first half of 2025, reporting a significant turnaround with a profit of $6.18 million compared to a loss of $31.64 million in the same period last year. The company’s revenue increased to $2.06 billion, driven by improved gross profit and reduced interest expenses, indicating a positive shift in operational efficiency and financial health.

FIH Mobile Schedules Board Meeting to Review Interim Results

FIH Mobile Limited has announced a board meeting scheduled for August 8, 2025, to review and potentially approve the company’s unaudited interim results for the first half of the year ending June 30, 2025. The meeting will also consider the possibility of issuing an interim dividend, reflecting the company’s ongoing financial strategies and potential shareholder returns.