Hon Hai Precision Industry (HNHPF) AI Stock Analysis

• Market Cap: $108.79B
• Dividend Yield: 2.4%
• Average Volume (3M): 3.52K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.75
• Revenue Growth: 17.53%
• EPS Growth: 17.80%
• Country: US
• Employees: 826,608
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.21
• Shares Outstanding: 6,982,111,300
• 10 Day Avg. Volume: 3,800
• 30 Day Avg. Volume: 3,519
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.70
• Enterprise Value/Revenue: 0.01
• Enterprise Value/Gross Profit: 0.17
• Enterprise Value/Ebitda: 0.20
• 1Y Price Target: $20.00
• Price Target Upside: 24.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: $18.00 ▲(12.08% Upside)

Hon Hai Precision Industry demonstrates strong financial performance with robust revenue growth and profitability, despite challenges in cash flow management. Technical indicators show bullish momentum, supporting a positive short-term outlook. The company's strategic focus on AI and cloud products is promising, though valuation metrics suggest the stock is fairly valued. Overall, the stock presents a solid investment opportunity with potential for growth, particularly in the AI sector.

Hon Hai Precision Industry Business Overview & Revenue Model

Company Description

Hon Hai Precision Industry Co., Ltd., also known as Foxconn, is a leading multinational electronics manufacturer headquartered in Taiwan. The company operates primarily in the electronics sector, providing a wide range of services including design, manufacturing, and supply chain management. Foxconn is best known for assembling products for major technology companies, such as Apple, Sony, and Microsoft, producing devices like smartphones, tablets, and gaming consoles. In addition to consumer electronics, Foxconn has diversified into other sectors, including automation, artificial intelligence, and electric vehicles.

How the Company Makes Money

Foxconn generates revenue primarily through contract manufacturing services, where it assembles electronic products for various global technology brands. The company's revenue model is largely based on serving as an original equipment manufacturer (OEM) and original design manufacturer (ODM), allowing it to capitalize on high-volume production contracts. Key revenue streams include the assembly of smartphones, laptops, and other consumer electronics, with significant contributions from long-term partnerships with major clients like Apple, which account for a substantial portion of its sales. Additionally, Foxconn has been expanding its services into new areas such as automation and electric vehicle components, which are poised to become important revenue sources in the future. The company's scale and expertise in supply chain management further enhance its competitive edge and profitability.

Hon Hai Precision Industry Financial Statement Overview

Summary

Hon Hai Precision Industry demonstrates strong revenue growth and profitability, with stable gross and net profit margins. The balance sheet is solid with a moderate debt-to-equity ratio. However, cash flow management is a concern, with significant declines in free cash flow and a low operating cash flow to net income ratio.

Income Statement

Hon Hai Precision Industry shows strong revenue growth with a 3.38% increase in TTM, supported by consistent profitability margins. The gross profit margin remains stable at around 6.2%, while the net profit margin has improved to 2.41% in TTM. The EBIT and EBITDA margins are healthy, indicating efficient operational management. Overall, the company demonstrates robust revenue growth and profitability.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.58, indicating a balanced approach to leveraging. Return on equity has improved to 11.05% in TTM, showcasing effective use of equity to generate profits. The equity ratio is stable, suggesting a solid financial foundation. However, the company should monitor its debt levels to maintain financial flexibility.

Cash Flow

The cash flow statement reveals challenges in free cash flow, with a significant decline of 75.93% in TTM. The operating cash flow to net income ratio is relatively low at 0.076, indicating potential cash flow management issues. Despite these challenges, the company maintains a positive free cash flow to net income ratio, suggesting some resilience in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.42T	6.86T	6.16T	6.63T	5.99T	5.36T
Gross Profit	459.85B	428.95B	387.95B	400.09B	362.13B	302.92B
EBITDA	373.14B	336.55B	342.17B	292.08B	291.01B	250.90B
Net Income	182.12B	152.71B	142.10B	141.48B	139.32B	101.79B
Balance Sheet
Total Assets	4.14T	4.39T	3.94T	4.13T	3.91T	3.67T
Cash, Cash Equivalents and Short-Term Investments	1.20T	1.32T	1.35T	1.08T	1.11T	1.28T
Total Debt	989.63B	961.56B	943.07B	974.01B	871.55B	748.26B
Total Liabilities	2.51T	2.54T	2.25T	2.48T	2.34T	2.20T
Stockholders Equity	1.46T	1.65T	1.49T	1.45T	1.38T	1.30T
Cash Flow
Free Cash Flow	-11.66B	21.99B	326.60B	8.05B	-192.71B	310.09B
Operating Cash Flow	144.12B	166.03B	445.55B	109.71B	-98.21B	377.62B
Investing Cash Flow	-255.22B	-300.05B	-137.87B	-45.44B	-92.08B	34.59B
Financing Cash Flow	11.96B	-164.07B	-160.64B	-87.87B	24.28B	-25.12B

Hon Hai Precision Industry Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HNHPF, the sentiment is Positive. The current price of 16.06 is above the 20-day moving average (MA) of 14.81, above the 50-day MA of 14.25, and above the 200-day MA of 11.26, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 67.43 is Neutral, neither overbought nor oversold. The STOCH value of 92.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HNHPF.

Hon Hai Precision Industry Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEL	―	$69.63B	48.65	11.63%	1.15%	4.86%	-56.43%
HNHPF	―	$108.79B	18.05	11.70%	2.40%	17.53%	17.80%
APH	―	$163.38B	44.61	34.78%	0.51%	47.37%	72.30%
FLEX	―	$24.13B	28.23	17.67%	―	-3.63%	2.26%
GLW	―	$74.88B	92.55	7.55%	1.25%	14.63%	86.61%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
JBL	―	$22.70B	35.86	40.43%	0.15%	3.18%	-46.01%

Hon Hai Precision Industry Corporate Events

Foxconn Subsidiary Proposes Mid-Year Profit Distribution

Foxconn Industrial Internet Co., Ltd., a subsidiary of Hon Hai Precision Industry, has announced a proposed distribution of profits for the first half of 2025, with a cash dividend of RMB 3.3 per 10 shares. This decision reflects the company’s strong financial performance and commitment to returning value to its shareholders, potentially enhancing its attractiveness to investors and solidifying its position in the electronics manufacturing sector.

Hon Hai’s Subsidiary Acquires Fulian Precision Shares for Strategic Investment

Hon Hai Precision Industry Co., Ltd., through its subsidiary Ingrasys (Singapore) Pte. Ltd., has acquired shares of Fulian Precision Technology Component Company Limited for a total transaction amount of USD 16.2 million. This acquisition is part of a long-term investment strategy and involves a related party transaction, with the parent and subsidiary companies being involved. The acquisition reflects Hon Hai’s ongoing efforts to strengthen its investment portfolio and maintain its competitive position in the technology manufacturing sector.

Hon Hai Subsidiary Acquires Factory Lease in Strategic Move

Hon Hai Precision Industry’s subsidiary, Ingrasys Technology Inc., has acquired the right-of-use assets for a factory building located in Taoyuan City. This acquisition involves a lease agreement for floors 2-6 of the building, with a total contract rent and management fee amounting to NT$676,205,160 over a 60-month term. The transaction was negotiated at market price and approved by the board of directors, reflecting the company’s strategic move to address operational needs. This acquisition is expected to enhance Ingrasys Technology’s operational capacity, potentially strengthening Hon Hai’s position in the competitive electronics manufacturing sector.

Hon Hai’s Subsidiary Acquires Factory Building in Mexico

Hon Hai Precision Industry’s subsidiary, FII AMC Mexico S. DE R.L. DE C.V., has acquired the right-of-use assets of a factory building located in El Salto, Mexico. This acquisition involves a lease agreement for a 120-month term with a total rent and management fee of approximately USD 20.19 million. The move is driven by operational needs and reflects the company’s strategic expansion in the region, potentially enhancing its manufacturing capabilities and market positioning.

Foxconn Subsidiary Advances Share Repurchase Strategy

Hon Hai Precision Industry’s subsidiary, Foxconn Industrial Internet Co., Ltd., has repurchased 7,697,400 shares, representing 0.04% of its total share capital, through the Shanghai Stock Exchange. This strategic move, involving a total expenditure of RMB 147,089,384, is part of the company’s efforts to manage its capital structure and potentially enhance shareholder value.

Hon Hai Precision Reports Strong Sales Growth in September 2025

Hon Hai Precision Industry Co., Ltd. reported a significant increase in its un-audited monthly sales for September 2025, with a 14.19% year-over-year growth, reaching NT$837,067,572. The company’s accumulated revenue for the current year also showed a notable rise of 16.27% compared to the previous year, highlighting its strong market performance and potential positive impact on stakeholders.

Hon Hai’s Subsidiary Acquires Saigon STEC for Business Expansion

Hon Hai Precision Industry’s subsidiary, Fullertain Info Tech Ltd., has acquired shares of Saigon STEC Co., Ltd. for a total transaction amount of USD 10,269,586.10. This acquisition, involving related party Sharp Sensing Technology Corporation, is aimed at expanding the business and has resulted in Fullertain Info Tech Ltd. holding 100% of Saigon STEC’s shares. The transaction, approved by the board of directors, is part of Hon Hai’s strategic efforts to bolster its market presence and operational capabilities.

Hon Hai Adjusts Share Exchange Date with TECO to Boost AI Data Center Strategy

Hon Hai Precision Industry Co., Ltd. has announced an adjustment to the record date for its share exchange transaction with TECO Electric & Machinery Co., Ltd. The transaction aims to enhance long-term competitiveness by leveraging the strengths of both companies in the electromechanical and ICT fields to capitalize on the global trend of AI data center construction. This strategic move is expected to open vast business opportunities in the global AIDC market and aligns with Foxconn’s strategic focus areas.

Hon Hai Subsidiary Acquires FII AMC Mexico Shares for $84 Million

Hon Hai Precision Industry’s subsidiary, Cloud Network Technology Singapore Pte. Ltd., has acquired shares of FII AMC MEXICO S. DE R.L. DE C.V. for USD 84 million. This transaction is part of a long-term investment strategy, with the subsidiary now holding a 99.99999999% shareholding percentage. The acquisition is expected to strengthen Hon Hai’s market position and enhance its operational capabilities in the region.

Foxconn Subsidiary Reports Abnormal Stock Fluctuations

Foxconn Industrial Internet Co., Ltd., a subsidiary of Hon Hai Precision Industry, announced abnormal fluctuations in its stock trading on the Shanghai Stock Exchange. This announcement may significantly impact shareholders’ rights or the price of securities, although no countermeasures have been specified.

Hon Hai’s Subsidiary Acquires Factory Rights in Texas

Hon Hai Precision Industry’s subsidiary, Q-Edge Corporation, has acquired the right-of-use assets for a factory building located in Houston, Texas. The transaction involves a substantial real estate asset of 656,658 square feet, with a total contract rent and management fee amounting to approximately USD 34.9 million. This strategic acquisition, approved by the board of directors, is intended to meet operational needs and is expected to enhance the company’s manufacturing capabilities in the region. The deal was negotiated at market price, with Liberty Property Limited Partnership as the trading counterparty.

Foxconn Sells Nanjing Land Use Rights for Strategic Asset Activation

Hon Hai Precision Industry Co., Ltd. announced the disposal of land use rights for four plots in Nanjing City through its subsidiary, Foxconn (NanJing) Software Co., Ltd. The transaction, valued at RMB 367 million, is expected to generate a revenue of RMB 267.52 million. This strategic move is part of Foxconn’s asset activation efforts, potentially impacting its financial position and operational strategy by optimizing resource allocation.

Hon Hai’s Subsidiary Acquires Shares in Fulian Precision

Hon Hai Precision Industry’s subsidiary, INGRASYS (SINGAPORE) PTE. LTD., has acquired shares in FULIAN PRECISION TECHNOLOGY COMPONENT COMPANY LIMITED for a total transaction amount of USD 39.4 million. This acquisition is a long-term investment and reflects Hon Hai’s strategy to strengthen its market position and expand its asset base. The transaction involves related parties, with the parent and subsidiary companies engaging in the deal, and it represents a small portion of the company’s total assets and equity.

Hon Hai Precision Industry Reports Strong Sales Growth in August 2025

Hon Hai Precision Industry Co., Ltd. reported a 10.61% year-over-year increase in its unaudited monthly sales for August 2025, reaching NT$606,512,275. The company’s accumulated revenue for the current year also saw a significant rise of 16.65% compared to the previous year, indicating strong operational performance and potentially enhancing its competitive position in the electronics manufacturing sector.

Hon Hai Precision Industry Announces Major Cash Dividends for Subsidiaries

Hon Hai Precision Industry Co., Ltd. announced the distribution of significant cash dividends on behalf of its subsidiaries, Best Behaviour Holdings Limited-BVI, Foxteq Holdings Inc.-Cayman, and Foxconn (Far East) Limited-Cayman. The total dividends amount to over USD 569 million, reflecting the company’s robust financial health and commitment to returning value to its stakeholders. This move signifies a strong financial position and could enhance investor confidence in the company’s strategic direction.

Hon Hai Precision Industry Launches 2025 Unsecured Corporate Bonds

Hon Hai Precision Industry Co., Ltd. has announced the issuance of its third series of unsecured corporate bonds in 2025, with four different tranches totaling NTD 11.4 billion. These bonds, with varying tenors from 3 to 10 years and fixed annual interest rates ranging from 1.85% to 1.99%, reflect the company’s strategic financial planning to support its operations and growth. This move is expected to strengthen Hon Hai’s financial position and provide it with additional capital to enhance its market competitiveness.

Foxconn Industrial Internet Appoints New CFO

Foxconn Industrial Internet Co., Ltd., a subsidiary of Hon Hai Precision Industry, has announced the appointment of Shen Tao-Pang as its new Chief Financial Officer, effective August 14, 2025. Shen brings extensive experience from his previous roles at Micron Technology, Inotera Memories, and HTC Corporation, which is expected to strengthen Foxconn Industrial Internet’s financial strategy and operations, potentially enhancing its market position and stakeholder confidence.

Hon Hai Precision Industry Expands Stake in Foxconn Singapore

Hon Hai Precision Industry Co., Ltd. announced the acquisition of approximately 56.3 million common shares in its subsidiary, Foxconn Singapore Pte Ltd, for a total of USD 360.3 million. This transaction, approved by the board of directors, reflects a strategic long-term investment aimed at strengthening the company’s operational capabilities and market positioning. The acquisition, which involves related parties, underscores Hon Hai’s commitment to expanding its influence and resources within the electronics manufacturing sector.

Hon Hai Precision Industry Reports Strong Q2 2025 Financial Results

Hon Hai Precision Industry Co., Ltd. has announced its consolidated financial results for the second quarter of 2025, revealing significant financial performance. The company reported an operating revenue of 3.44 trillion NTD and a net profit of 95.37 billion NTD for the first half of the year, with basic earnings per share at 6.23 NTD. These results indicate a strong financial position, with total assets reaching over 4.13 trillion NTD and equity attributable to owners at 1.46 trillion NTD, underscoring the company’s robust market standing and potential positive implications for stakeholders.

Hon Hai Subsidiary Acquires Shares in Strategic Investment Move

Hon Hai Precision Industry’s subsidiary, Cloud Network Technology Singapore Pte. Ltd., has acquired shares in FII AMC MEXICOS. DE R.L. DE C.V. for a total transaction amount of USD 45 million. This acquisition is part of a long-term investment strategy and involves a related party transaction, with the parent company and subsidiary companies being the trading counterparties. The acquisition is expected to enhance the company’s investment portfolio, although it does not signify a change in business model.

Foxconn Subsidiary to Announce H1 2025 Financial Results

Foxconn Industrial Internet Co., Ltd., a subsidiary of Hon Hai Precision Industry, will hold a performance conference on August 15, 2025, to disclose its operating results and financial position for the first half of the year. This announcement is significant as it provides stakeholders with insights into the company’s financial health and operational performance, potentially impacting investor decisions and market perceptions.

Hon Hai Precision Reports Strong Revenue Growth in July 2025

Hon Hai Precision Industry Co., Ltd. reported a 7.25% year-over-year increase in revenue for July 2025, amounting to NT$613.86 billion, compared to NT$572.35 billion in the same month last year. The company’s accumulated revenue for the current year has reached NT$4.05 trillion, marking a 17.62% increase from the previous year. This growth reflects the company’s strong market positioning and operational efficiency, which are crucial for maintaining its competitive edge in the electronics manufacturing sector.

Foxconn Subsidiary Reports Progress on Share Repurchase Program

Foxconn Industrial Internet Co., Ltd., a subsidiary of Hon Hai Precision Industry, announced the progress of its share repurchase program. As of July 31, 2025, the company repurchased 7,697,400 shares, which is 0.04% of its total share capital, with the highest repurchase price at RMB 19.84 per share. This move, involving a total expenditure of RMB 147,089,384, is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

Hon Hai Precision Industry Sells Assets to Optimize Operations

Hon Hai Precision Industry Co., Ltd. announced the disposal of land, buildings, and machinery by its subsidiaries Foxconn EV Property Development LLC, Foxconn EV Asset Management LLC, and Foxconn EV System LLC. The transactions, totaling over USD 375 million, are part of an asset revitalization strategy aimed at optimizing product portfolios and enhancing operational performance. These strategic disposals are expected to generate significant gains and reflect the company’s ongoing efforts to streamline operations and focus on core business areas.

Hon Hai Precision Industry Releases 2024 Audited Financial Statements

Hon Hai Precision Industry Co., Ltd. has released its audited consolidated financial statements for the year ending December 31, 2024. The audit, conducted in accordance with international standards, confirmed the fair presentation of the company’s financial position and performance. Key audit matters included the correctness of revenue recognition timing, allowance for inventory valuation losses, and impairment assessment on goodwill from acquisitions. These areas were scrutinized due to their complexity and potential impact on financial results, reflecting the company’s focus on maintaining robust financial practices amidst rapid technological changes and market dynamics.

Foxconn Subsidiary Reports Abnormal Stock Fluctuations

Foxconn Industrial Internet Co., Ltd., a subsidiary of Hon Hai Precision Industry, announced abnormal fluctuations in its stock trading on the Shanghai Stock Exchange. This announcement serves as a reminder for investors to be cautious of potential investment risks, although no specific countermeasures have been outlined.

Hon Hai Precision Industry Distributes Over $2 Billion in Dividends

Hon Hai Precision Industry Co., Ltd. announced the distribution of substantial cash dividends on behalf of its subsidiaries, China Galaxy Enterprises Limited-HK, Best Behaviour Holdings Limited-BVI, and Foxconn (Far East) Limited-Cayman, totaling over USD 2 billion. This distribution reflects the company’s robust financial health and commitment to delivering value to its stakeholders, reinforcing its strong position in the electronics manufacturing industry.

Hon Hai Precision Industry Announces Q2 FY25 Investor Conference

Hon Hai Precision Industry Co., Ltd. has announced an upcoming investor conference scheduled for August 14, 2025, to discuss its financial results for the second quarter of fiscal year 2025 and provide an outlook for the third quarter. This conference is significant as it offers insights into the company’s financial health and strategic direction, potentially impacting stakeholders’ perceptions and investment decisions.

Hon Hai Precision to Resume Stock Trading on July 31

Hon Hai Precision Industry Co., Ltd. announced that its stock trading will resume on July 31, 2025, following a temporary halt due to pending material information. The Taiwan Stock Exchange (TWSE) approved the resumption after the company provided a comprehensive explanation of the circumstances surrounding the halt, ensuring transparency and compliance with exchange regulations.

Hon Hai Precision Industry Announces Strategic Share Exchange with TECO

Hon Hai Precision Industry Co., Ltd has announced a strategic share exchange with TECO Electric & Machinery Co., Ltd to enhance long-term competitiveness by leveraging mutual strengths in the electromechanical and ICT fields. This collaboration aims to capitalize on the global trend towards AI data center standardization and modularization, opening up significant business opportunities in the global AIDC market. The share exchange involves acquiring 237,644,068 common shares of TECO, with the transaction expected to be completed by October 1, 2025.

Hon Hai Announces Trading Halt Amid Pending Information Release

Hon Hai Precision Industry Co., Ltd. announced a trading halt on its listed securities starting July 30, 2025, as approved by the Taiwan Stock Exchange (TWSE). The halt is due to the pending release of significant information, which could have implications for the company’s operations and market positioning. The resumption of trading will occur after a full explanation is provided and approved by TWSE, highlighting the potential impact on stakeholders and market dynamics.

Hon Hai Precision Expands EV Investments with Strategic Acquisitions

Hon Hai Precision Industry Co., Ltd. announced the acquisition of shares in Foxconn EV Technology Inc. and Foxconn EV System LLC through its subsidiaries, PCE Paragon Solutions Kft. and Foxconn EV Technology Inc., respectively. The transactions, valued at USD 23.4 million each, aim to bolster Foxconn’s long-term investment strategy in the electric vehicle sector, enhancing its market positioning and operational capabilities in this growing industry.

Foxconn Subsidiary Announces Major Cash Dividend Distribution

Foxconn Industrial Internet Co., Ltd., a subsidiary of Hon Hai Precision Industry, has announced a significant cash dividend distribution of RMB 12.7 billion, equating to RMB 0.64 per share. This move, set to take effect on July 31, 2025, reflects the company’s robust financial health and commitment to returning value to its shareholders, potentially enhancing its market position and stakeholder confidence.