Reported 8 months ago
Foreign investors have increased their optimism in Hon Hai, as American foreign institutions indicate that Apple's AI strategy at the WWDC conference could boost the iPhone upgrade cycle. With a strong presence in high-end device production and high profit margins, along with the launch of AI servers, Hon Hai is expected to contribute 13% and 19% to revenue this year and the next. The foreign institutions have reiterated a buy rating and raised the target price from 227 yuan to 257 yuan, while also increasing earnings estimates for this and next year. Optimistic about the future momentum of Hon Hai, foreign institutions expect growth in consumer electronics business volume and average prices, with a potential growth of 1% and 2% in the next two years, compared to the previous expected decline of 3%. The AI server volume is also expected to increase, with NVIDIA rack solutions set to ship in the fourth quarter, and Hon Hai providing AI rack-level solutions globally. Therefore, it is estimated that AI server revenue will contribute 13% and 19% to revenue this year and the next.
Source: YAHOO