Driven by the demand for AI servers, Hon Hai's August sales reached NT$548.31 billion, hitting a new high for the same period in previous years | Financial Report News
Benefiting from strong demand for AI servers, Hon Hai's sales reached 548.31 billion New Taiwan dollars in August 2023, a year-on-year increase of 32.81%. Although there was a 4.2% decrease compared to the previous month, the cumulative revenue for the first 8 months increased by 9.52% year-on-year, also setting a new high for the same period in previous years. Among different product categories, both computer terminals and cloud network products showed strong year-on-year performance, while consumer smart products saw a slight decline due to product replacements. Looking ahead, Hon Hai expects to continue benefiting from the strong season in the second half of the year and the recovery of the global smartphone market
Benefiting from strong AI server demand, iPhone manufacturer Hon Hai saw a 33% increase in revenue in August, with growth accelerating from the previous month.
On Thursday, September 5th, Hon Hai released its revenue report for August 2024, which revealed:
1) Key Data:
Operating Revenue: Sales in August reached NT$ 548.31 billion, hitting a new high for the same period in previous years, with a year-on-year growth of 32.81% and a month-on-month decrease of 4.2%.
Cumulative revenue for the first 8 months amounted to NT$ 3.9946 trillion, up 9.52% year-on-year, also reaching a new high for the same period in previous years (the second-highest was NT$ 3.8426 trillion for the first 8 months of 2022).
2) Product Category Data:
Computer Terminal Product Category: Revenue in August remained relatively stable month-on-month, but showed strong performance year-on-year due to increased customer demand.
Cloud Network Product Category: Revenue in August remained relatively stable month-on-month, driven by continued demand for AI cloud products, and showed strong performance year-on-year.
Components and Other Product Category: Revenue in August remained relatively stable month-on-month, with strong year-on-year performance driven by increased shipments of key components and growth in automotive business shipments.
Consumer Smart Product Category: Revenue in August slightly decreased month-on-month due to the transition of main products from old to new, showing a slight decline compared to the previous month; however, it showed strong year-on-year performance due to increased customer demand.
The financial report also pointed out that year-to-date, cumulative revenue for the Computer Terminal Product Category, Cloud Network Product Category, and Components and Other Product Category has all shown significant growth. The Computer Terminal Product Category benefited from the launch of major new products this year, showing significant year-on-year growth; the Cloud Network Product Category experienced strong growth year-on-year due to robust demand for AI servers; and the Components and Other Product Category saw strong growth year-on-year driven by increased shipments of key components and growth in automotive business shipments.
The Consumer Smart Product Category experienced a slight year-on-year decline due to delayed orders from the Zhengzhou factory last year, resulting in a higher base period.
It is worth noting that in recent months, iPhone shipments in China have rebounded, and the global smartphone market is recovering, which may bode well for Hon Hai's performance.
Looking ahead, Hon Hai stated:
"As we have now entered the peak season of the second half of the year, operations will gradually heat up. We expect performance growth in the third quarter both quarterly and annually. However, visibility is currently better than in the previous estimate." As early as last month, the company stated that it expects revenue for the remaining time of this year to increase, reversing the downward trend of several consecutive quarters. In addition, Hon Hai has set a goal to occupy 40% of the global AI server market with its close relationships with many global tech giants and profound manufacturing capabilities.
So far this year, the company's stock price has risen by nearly 70%. As of today's close, Hon Hai Precision Industry Co., Ltd. reported $11.15 per share.
