鸿海-7 月营收在 8 - 10 月实现 7% 同比增长；给予 “买入” 评级-Hon Hai (2317.TW)_ July revenues +7 YoY growth in Aug-Oct ; Buy

Summary of Hon Hai's Earnings Call Company Overview - Company: Hon Hai Precision Industry Co., Ltd. (2317.TW) - Industry: Information and Communication Technology (ICT), including smartphones, PCs, servers, and electric vehicles (EV) Key Financial Highlights - July Revenues: Increased by 7% YoY to NT$614 billion, and 14% MoM, exceeding estimates by 6% [1] - USD Revenue Growth: July revenues rose by 17% YoY and 15% MoM, influenced by foreign exchange (FX) impacts [1] - Segment Performance: All four segments showed positive MoM growth, with PCs leading due to back-to-school promotions, followed by consumer electronics, components, and cloud/networking [1] - Cloud and Networking: This segment remained flat MoM due to FX impacts and soft networking demand, while AI servers continued to ramp up [1] Future Outlook - 3Q25 Revenue Expectations: Anticipated growth of 10% YoY and 14% QoQ, driven by AI server shipments and new smartphone model launches [6] - August Revenue Projection: Expected to decrease by 1% MoM, a significant improvement compared to previous years [6] - September and October Growth: Forecasted MoM growth of 35% and 10%, respectively, sustaining double-digit YoY growth during this period [8] Earnings Revisions - 2025 EPS Revision: Increased by 1% due to better-than-expected revenue growth in 2H25, supported by AI server ramp-up and improved seasonality in consumer electronics [10] - Revenue Estimates: Revised revenue estimates for 2025E increased by 1% to NT$7,907 million [13] Investment Thesis - Market Position: Hon Hai is a leader in the ICT market, expanding into AI servers and EVs, which are expected to have stronger demand compared to traditional consumer electronics [19] - Valuation: The stock is viewed as appealing, trading below peers despite better earnings growth prospects [19] Risks - Key Risks Identified: 1. Slower-than-expected ramp-up of AI servers business [21] 2. Weaker-than-expected performance in EV solutions [21] 3. Capacity ramp-up challenges globally [21] 4. Increased competition in the consumer electronics EMS sector [21] Price Target and Valuation - 12-Month Price Target: NT$242, based on a target P/E multiple of 14.9x for 2026E [20] - Current Price: NT$184.50, indicating an upside potential of 31.2% [22] Conclusion - Recommendation: The stock is rated as a "Buy" due to its strong market position, growth potential in AI and EV sectors, and appealing valuation metrics [19][20]