FIH Mobile (2038) AI Stock Analysis

• Market Cap: HK$13.57B
• Dividend Yield: N/A
• Average Volume (3M): 1.45M
• Price to Earnings (P/E): 108.9
• Beta (1Y): 1.20
• 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: 1,153,872
• 30 Day Avg. Volume: 1,453,917
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: HK$19.50 ▲(12.85% Upside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenues and profitability issues. Technical analysis provides some positive momentum, but the high P/E ratio indicates overvaluation, limiting the stock's attractiveness.

FIH Mobile Business Overview & Revenue Model

Company Description

FIH Mobile Limited, a subsidiary of Foxconn Technology Group, is a leading global provider of end-to-end manufacturing services and solutions for the mobile device industry. The company operates across various sectors including design, development, and manufacturing of mobile phones and other wireless communication devices. FIH Mobile serves a wide range of customers, including major smartphone brands and telecom operators, offering a comprehensive suite of services from product development to after-sales support.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.87B	5.70B	6.45B	9.39B	8.58B	8.93B
Gross Profit	181.02M	134.64M	109.82M	191.96M	224.41M	95.20M
EBITDA	179.07M	126.25M	107.74M	135.32M	268.39M	59.48M
Net Income	17.41M	-20.33M	-120.68M	-72.14M	56.33M	-173.84M
Balance Sheet
Total Assets	4.06B	3.82B	4.32B	5.51B	5.98B	6.03B
Cash, Cash Equivalents and Short-Term Investments	1.06B	1.69B	1.90B	1.85B	1.90B	1.79B
Total Debt	134.35M	346.00M	707.65M	679.82M	880.67M	953.28M
Total Liabilities	2.57B	2.36B	2.76B	3.72B	3.81B	3.95B
Stockholders Equity	1.49B	1.46B	1.56B	1.78B	2.16B	2.08B
Cash Flow
Free Cash Flow	75.26M	237.23M	9.48M	266.12M	162.51M	-190.64M
Operating Cash Flow	184.44M	362.24M	102.66M	409.41M	281.31M	-88.91M
Investing Cash Flow	-326.44M	-220.91M	-40.09M	-126.96M	-87.14M	-11.72M
Financing Cash Flow	-784.09M	-428.53M	-37.13M	-214.02M	-110.88M	278.54M

FIH Mobile Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 17.28 is below the 20-day moving average (MA) of 17.72, above the 50-day MA of 16.36, and above the 200-day MA of 11.20, indicating a bullish trend. The MACD of 0.48 indicates Positive momentum. The RSI at 57.63 is Neutral, neither overbought nor oversold. The STOCH value of 63.28 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	73 Outperform	$241.68B	21.46	10.66%	1.65%	3.16%	-19.51%
0303	70 Outperform	HK$15.29B	12.50	24.32%	7.91%	1.05%	-6.29%
2018	63 Neutral	$45.82B	19.63	9.39%	0.60%	30.73%	90.08%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2038	56 Neutral	HK$13.57B	108.93	1.16%	―	3.21%	―
6869	55 Neutral	$49.40B	43.26	5.20%	0.74%	12.10%	-44.33%
2342	54 Neutral	$8.84B	―	-10.70%	0.20%	-13.99%	-32.74%

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.