FIH Mobile (2038) AI Stock Analysis

• Market Cap: $14.19B
• Dividend Yield: N/A
• Average Volume (3M): 909.27K
• Price to Earnings (P/E): 110.7
• Beta (1Y): 1.23
• 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: 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: 0.06
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 4.81
• Enterprise Value/Ebitda: 4.86
• 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$19.50 ▼(-4.60% Downside)

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 Position

FIH Mobile's strong liquidity and negative net debt enhance its financial flexibility, allowing it to invest in growth opportunities and weather economic downturns.

Strategic Partnerships

Long-term contracts and strategic partnerships ensure a steady flow of projects, providing stability and predictability in revenue streams.

Operating Cash Flow Improvement

Improved operating cash flow suggests enhanced operational efficiency, allowing FIH Mobile to reinvest in its business and reduce reliance on external financing.

Negative Factors

Declining Revenue

The substantial decline in revenue indicates challenges in maintaining market share and competitiveness, potentially impacting long-term growth prospects.

Negative Net Income

Persistent negative net income highlights profitability challenges, which can hinder reinvestment in business operations and affect shareholder value.

Reduced Stockholders' Equity

A decline in stockholders' equity suggests potential long-term financial risk, limiting the company's ability to absorb losses and invest in future growth.

FIH Mobile Business Overview & Revenue Model

Company Description

FIH Mobile is a leading global provider of mobile device manufacturing and technology solutions, specializing in the design, production, and distribution of smartphones and connected devices. Operating primarily in the consumer electronics sector, the company partners with major brands to deliver high-quality devices tailored to various market segments. FIH Mobile leverages advanced manufacturing technologies and supply chain efficiencies to enhance its product offerings, which include both branded and private-label smartphones, wearables, and IoT devices.

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: Positive
• Last Price: 20.44
• 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 20.44 is above the 20-day moving average (MA) of 19.20, above the 50-day MA of 18.70, and above the 200-day MA of 13.09, indicating a bullish trend. The MACD of 0.58 indicates Negative momentum. The RSI at 61.82 is Neutral, neither overbought nor oversold. The STOCH value of 68.86 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	79 Outperform	$15.96B	14.20	23.17%	7.60%	-0.99%	-10.43%
0763	68 Neutral	$192.19B	22.00	7.73%	2.11%	5.14%	-38.37%
2018	63 Neutral	$46.12B	19.76	9.39%	0.62%	30.73%	90.08%
6869	62 Neutral	HK$53.28B	46.22	4.79%	0.70%	14.38%	-41.96%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
2038	56 Neutral	$14.19B	110.67	1.16%	―	3.21%	―
2342	46 Neutral	$8.76B	―	-10.70%	0.23%	-13.99%	-32.74%

FIH Mobile Corporate Events

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.

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.

FIH Mobile Announces Leadership Transition with New Chairman Appointment

FIH Mobile Limited announced significant leadership changes effective October 31, 2025, with the retirement of Mr. Chih Yu Yang as executive director and chairman of the board, and the appointment of Mr. Huang Ying Shih as the new non-executive director and chairman. Mr. Huang brings extensive experience in corporate management and financial governance, having held key roles in multinational technology enterprises and global manufacturing groups. This leadership transition is expected to enhance the company’s strategic direction and governance standards, potentially impacting its market positioning and stakeholder relations.

FIH Mobile Announces Board Restructuring

FIH Mobile Limited, a company incorporated in the Cayman Islands, has announced changes to its board of directors effective October 31, 2025. The board includes executive, non-executive, and independent non-executive directors, with specific roles and functions assigned to each. This restructuring may impact the company’s governance and strategic direction, potentially affecting stakeholders and market positioning.