FIH Mobile (2038) AI Stock Analysis

• Market Cap: $7.15B
• Dividend Yield: N/A
• Average Volume (3M): 3.69M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.13
• Revenue Growth: -11.86%
• EPS Growth: 83.13%
• Country: HK
• Employees: 31,568
• Sector: Technology
• Sector Strength: 82
• Industry: Communication Equipment
• EPS (TTM): 0.11
• Shares Outstanding: 788,450,000
• 10 Day Avg. Volume: 1,504,119
• 30 Day Avg. Volume: 3,693,829
• PEG Ratio: 0.05
• Price to Book (P/B): 0.48
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.20
• Enterprise Value/Market Cap: -0.04
• Enterprise Value/Revenue: -0.01
• Enterprise Value/Gross Profit: -2.18
• Enterprise Value/Ebitda: -11.61
• 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$9.50 ▼(-1.25%Downside)

The overall stock score reflects significant challenges in financial performance due to revenue declines and negative profitability. Technical analysis shows some positive momentum, which partially offsets the low valuation score due to a negative P/E ratio and lack of dividend yield. No earnings call or corporate events data was available to influence the score.

FIH Mobile Business Overview & Revenue Model

Company Description

FIH Mobile Limited, a subsidiary of Hon Hai Precision Industry Co., Ltd. (Foxconn), operates in the technology and electronics manufacturing sector. It specializes in providing end-to-end manufacturing and assembly services for mobile phones and other wireless communication devices. The company's core products include smartphones, tablets, and other handheld devices, as well as related components and accessories.

How the Company Makes Money

FIH Mobile generates revenue primarily through its contract manufacturing services, where it partners with leading global technology brands to produce mobile devices and components. The company makes money by leveraging its extensive manufacturing capabilities and advanced technology to offer cost-effective and efficient production solutions. Key revenue streams include manufacturing fees, sales of components, and after-sales services. Partnerships with major tech companies contribute significantly to its earnings, as they ensure a steady stream of manufacturing contracts and opportunities to provide additional value-added services.

FIH Mobile Financial Statement Overview

Summary

FIH Mobile faces significant challenges in financial performance, with revenue declines and negative net income reflecting profitability issues. While liquidity is strong, the equity decline and operational cash flow improvements are offset by volatility in free cash flow. Strategic adjustments are needed for long-term stability.

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
	EBIT
-17.46M	-73.41M	54.61M	66.83M	-91.86M
	EBITDA
126.25M	107.74M	135.32M	268.39M	59.48M
	Net Income Common Stockholders
-20.33M	-120.68M	-72.14M	56.33M	-173.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.69B	1.90B	1.85B	1.90B	1.79B
	Total Assets
3.82B	4.32B	5.51B	5.98B	6.03B
	Total Debt
346.00M	707.65M	679.82M	880.67M	953.28M
	Net Debt
-1.17B	-1.14B	-1.15B	-1.00B	-826.05M
	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: 9.62
• 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 9.62 is above the 20-day moving average (MA) of 9.19, above the 50-day MA of 8.37, and above the 200-day MA of 8.67, indicating a bullish trend. The MACD of 0.30 indicates Positive momentum. The RSI at 59.40 is Neutral, neither overbought nor oversold. The STOCH value of 55.55 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
0303	74 Outperform	$13.90B	11.36	24.32%	8.26%	-5.78%	-0.51%
0763	74 Outperform	$159.37B	13.19	11.39%	2.93%	-2.65%	-14.96%
6869	74 Outperform	$20.73B	14.88	6.68%	4.72%	0.24%	-31.74%
Sector *	62 Neutral	$11.92B	10.48	-7.50%	2.95%	7.40%	-8.18%
2018	58 Neutral	$45.59B	23.14	8.06%	0.62%	31.55%	141.88%
2038	56 Neutral	$7.15B	―	-1.35%	―	-11.86%	83.13%
2342	53 Neutral	$5.19B	―	-18.09%	1.26%	-24.30%	-10350.00%

FIH Mobile Corporate Events

FIH Mobile Announces AGM Resolutions and Share Consolidation

FIH Mobile Limited announced the successful passage of all resolutions during its Annual General Meeting held on May 16, 2025. The resolutions include the approval of the company’s financial statements, re-election of directors, and the re-appointment of auditors. Additionally, the company confirmed that the share consolidation will take effect on May 20, 2025, with adjustments to outstanding share awards to follow. This development is expected to streamline the company’s share structure and potentially enhance shareholder value.

FIH Mobile Grants Over 7 Million Shares to Executives

FIH Mobile Limited has announced the grant of 7,001,902 award shares to its executive directors as part of its share scheme, which was amended to comply with recent changes in the Hong Kong Listing Rules. The shares, which have a vesting period of 12 months, are subject to performance targets and a clawback mechanism, ensuring alignment with the company’s financial goals and accountability standards.

FIH Mobile Announces Fourth Capital Injection into Vietnamese Subsidiary

FIH Mobile Limited has announced a proposed fourth capital injection of approximately US$35.8 million into its indirect wholly-owned subsidiary, Fushan Technology (Vietnam) Limited Liability Company. This investment is aimed at enhancing Fushan’s working capital and supporting its general corporate purposes. Once completed, this capital injection will increase Fushan’s total contributed capital significantly, reinforcing FIH Mobile’s commitment to expanding its operations in Vietnam. The move is not considered a notifiable or connected transaction under Hong Kong Stock Exchange rules, indicating a strategic internal investment to bolster their manufacturing capabilities.

FIH Mobile Reports Q1 2025 Financials and Optimistic Outlook for Interim Performance

FIH Mobile Limited has released unaudited financial information for the first quarter of 2025, revealing a modest increase in revenue and a return to profit compared to the same period last year. Despite a decrease in cash and cash equivalents, the company anticipates improved financial results for the first half of 2025 due to strategic customer portfolio optimization and cost efficiency measures, which are expected to enhance gross margins and financial resilience.

FIH Mobile Enhances Subsidiary Control Through Equity Transfer

FIH Mobile Limited announced an intra-group equity interest transfer where Shenzhen Futaihong Precision Industry Co., Ltd. will acquire 62.15% of FIH Precision Electronics (LangFang) Co., Ltd. from Execustar International Limited for approximately US$305 million. This move aims to enhance decision-making efficiency within the company and aligns with its strategic development goals, with no expected adverse impact on its financial position or operations.

FIH Mobile Limited Announces 2025 Annual General Meeting

FIH Mobile Limited has announced its Annual General Meeting (AGM) scheduled for May 16, 2025, in Hong Kong. Key agenda items include the consideration of the company’s 2024 financial statements, re-election of directors, and re-appointment of Deloitte Touche Tohmatsu as auditors. Additionally, the meeting will address resolutions to authorize the board to issue additional shares and securities, which could impact the company’s capital structure and market positioning.

FIH Mobile Announces Proposed Share Consolidation and Amendments

FIH Mobile has announced a proposed share consolidation, which involves consolidating every ten existing shares into one consolidated share. This move is part of a broader plan to amend the company’s Memorandum and Articles of Association to reflect changes in authorized share capital. The share consolidation is subject to shareholder approval at the upcoming AGM. If approved, it will not affect the company’s underlying assets, business operations, or financial position, but will require adjustments to outstanding share awards.