FIH Mobile (2038) AI Stock Analysis

• Market Cap: HK$10.91B
• Dividend Yield: N/A
• Average Volume (3M): 1.50M
• Price to Earnings (P/E): 85.1
• Beta (1Y): 1.17
• Revenue Growth: 3.21%
• EPS Growth: N/A
• Country: HK
• Employees: 31,568
• Sector: Technology
• Sector Strength: 94
• Industry: Communication Equipment
• EPS (TTM): 0.06
• Shares Outstanding: 788,450,000
• 10 Day Avg. Volume: 1,301,268
• 30 Day Avg. Volume: 1,502,776
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$9.50
• Price Target Upside: -36.26% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• Price Target: HK$13.50 ▼(-9.40% 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, 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. Overall, 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: 14.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 14.9 is above the 20-day moving average (MA) of 13.49, above the 50-day MA of 11.36, and above the 200-day MA of 9.38, indicating a bullish trend. The MACD of 0.99 indicates Negative momentum. The RSI at 83.43 is Negative, neither overbought nor oversold. The STOCH value of 94.53 is Negative, 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	$167.16B	13.38	11.39%	2.72%	-2.65%	-14.96%
0303	74 Outperform	HK$15.66B	12.80	24.32%	7.71%	1.05%	-6.29%
6869	70 Outperform	$36.76B	31.35	6.68%	0.94%	0.24%	-31.74%
2018	61 Neutral	$50.56B	25.66	8.06%	0.55%	31.55%	141.88%
2038	59 Neutral	HK$10.91B	85.09	1.16%	―	3.21%	―
Sector *	57 Neutral	HK$14.16B	10.67	-2.83%	4.83%	9.36%	-49.67%
2342	54 Neutral	HK$5.65B	―	-18.09%	1.26%	-24.30%	-10350.00%

FIH Mobile Corporate Events

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.

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.