FIH Mobile (2038) AI Stock Analysis

• Market Cap: HK$15.62B
• Dividend Yield: N/A
• Average Volume (3M): 909.27K
• Price to Earnings (P/E): 41.9
• Beta (1Y): 1.24
• Revenue Growth: 3.21%
• EPS Growth: N/A
• Country: HK
• Employees: 31,568
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.46
• Shares Outstanding: 788,450,000
• 10 Day Avg. Volume: 762,816
• 30 Day Avg. Volume: 909,274
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: HK$22.00 ▲(12.53% Upside)
• Action: Reiterated Date: 10/23/25
• Date: Action: Reiterated 10/23/25

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.

Positive Factors

Strong liquidity / negative net debt

Negative net debt and substantial cash reserves give FIH Mobile durable financial flexibility. This liquidity supports working capital, supplier terms, and discretionary R&D or capex spending, reducing refinancing risk and enabling the company to withstand cyclical downturns without immediate capital raises.

Improving operating cash flow

Improved operating cash flow in 2024 indicates the core manufacturing business can generate cash from operations. Sustained OCF strengthens internal funding for inventory and capex, lowers reliance on external financing, and, if stabilized, supports longer-term investment and margin recovery despite FCF volatility.

B2B manufacturing model and partnerships

FIH's B2B contract-manufacturing model and long-term OEM partnerships create recurring revenue and scale advantages. Economies of scale lower per-unit costs and sustain competitive pricing, while durable customer relationships produce steady order flows and higher switching costs versus retail-facing peers.

Negative Factors

Material revenue decline

A multi-year revenue drop of this magnitude signals structural loss of volume or customer share, eroding scale economics. Reduced top-line volume weakens pricing power, increases unit costs, and constrains the firm's ability to invest in product innovation or maintain fixed-cost absorption over the medium term.

Persistent unprofitability and thin margins

Chronic negative net income and thin gross margins limit cash available for reinvestment and heighten sensitivity to input-cost inflation. Sustained unprofitability erodes equity, reduces strategic optionality, and may force cost cuts or external financing that can impair long-term competitiveness and supplier relationships.

Cash flow volatility and weaker equity base

Volatile free cash flow coupled with declining shareholders' equity creates planning and funding uncertainty. Inconsistent FCF limits predictable reinvestment in capacity or R&D, while a eroding equity base can restrict borrowing capacity and increase vulnerability to adverse market or demand shocks over the medium term.

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 generates revenue primarily through the manufacturing and sale of mobile devices, with key revenue streams coming from contracts with major technology companies and telecommunications providers. The company operates on a business-to-business (B2B) model, supplying devices under different brand names, and receives income from both direct sales and long-term supply agreements. Additionally, FIH Mobile benefits from economies of scale in production, which allows for competitive pricing and improved margins. Significant partnerships with leading brands bolster its market presence, while ongoing investments in R&D drive innovation, helping to capture emerging trends in the mobile technology landscape.

FIH Mobile Financial Statement Overview

Summary

FIH Mobile faces significant challenges in revenue growth and profitability, with declining revenues and negative net income. Despite strong liquidity, the balance sheet shows reduced equity, and cash flow improvements are offset by historical volatility.

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: Neutral
• Last Price: 19.55
• 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 Neutral. The current price of 19.55 is below the 20-day moving average (MA) of 21.20, below the 50-day MA of 20.30, and above the 200-day MA of 16.62, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 50.87 is Neutral, neither overbought nor oversold. The STOCH value of 54.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:2038.

FIH Mobile Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0303	79 Outperform	HK$15.52B	6.79	23.17%	7.66%	-0.99%	-10.43%
6869	65 Neutral	HK$178.17B	46.77	4.90%	0.54%	14.38%	-41.96%
2018	63 Neutral	HK$37.67B	24.57	7.38%	0.63%	30.73%	90.08%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2038	56 Neutral	HK$15.62B	41.91	1.18%	―	3.21%	―
0763	47 Neutral	HK$185.29B	21.31	7.73%	2.43%	5.14%	-38.37%
2342	46 Neutral	HK$5.58B	21.06	-10.70%	0.24%	-13.99%	-32.74%

FIH Mobile Corporate Events

FIH Mobile Shareholders Approve Key 2026 Connected Transaction Caps with Hon Hai

FIH Mobile’s independent shareholders have overwhelmingly approved three key continuing connected transactions with its parent group Hon Hai, covering purchase, consolidated services and sub-contracting expenses, and product sales, along with their respective annual caps for the year ending 31 December 2026. The strong support at the extraordinary general meeting, where Hon Hai and its associates abstained from voting, clears the way for the company to continue its operational arrangements within the Hon Hai group structure, providing visibility over future related-party business volumes and reinforcing governance around these transactions for minority investors.

The most recent analyst rating on (HK:2038) stock is a Hold with a HK$19.50 price target. To see the full list of analyst forecasts on FIH Mobile stock, see the HK:2038 Stock Forecast page.

FIH Mobile Extends Agreements with Hon Hai for Continued Synergy

FIH Mobile has announced the extension of its Continuing Connected Transactions with Hon Hai Technology Group by entering into Supplemental Agreements, extending the current term of the Existing Agreements for an additional year until December 31, 2026. The company has set new annual caps for these transactions, which are subject to shareholder approval at an Extraordinary General Meeting (EGM). The move aims to maintain and strengthen the operational synergy between FIH Mobile and Hon Hai, potentially impacting their market positioning and stakeholder interests.

The most recent analyst rating on (HK:2038) stock is a Hold with a HK$19.50 price target. To see the full list of analyst forecasts on FIH Mobile stock, see the HK:2038 Stock Forecast page.

FIH Mobile Reports Revenue Growth and Profitability for 2025

FIH Mobile Limited has released unaudited financial information for the nine months ending September 30, 2025, showing significant revenue growth and a return to profitability compared to the previous year. Despite fluctuations in past performance, the company advises caution to investors, as the results may not be indicative of future periods. The company plans to release finalized audited results in its annual report.

The most recent analyst rating on (HK:2038) stock is a Hold with a HK$19.50 price target. To see the full list of analyst forecasts on FIH Mobile stock, see the HK:2038 Stock Forecast page.