Understanding the Market | FIH rose nearly 7% during the session, achieving a turnaround to profit in the third quarter, rumored that Apple plans to collaborate with Foxconn to produce AI servers

Zhitong
2024.11.19 06:56
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FIH Group's stock price rose nearly 7% during the trading session, and as of the time of writing, it is up 5.75%, trading at HKD 0.92, with a transaction volume of HKD 12.2884 million. In terms of news, FIH Group previously announced its third-quarter results, with operating revenue and other operating income of USD 2.26 billion, a year-on-year decrease of 5.3%, and a profit of USD 5.432 million, compared to a loss of USD 20.365 million in the same period last year, achieving a turnaround to profitability. The company expects sales in the fiscal year 2024 to decline year-on-year, mainly due to intense competition and changes in clients' outsourcing strategies leading to a decrease in sales. Although operating expenses have decreased, low asset utilization remains a major challenge. The company anticipates that financial performance is expected to improve in the second half of the year through measures such as optimizing the client portfolio and reducing expenses. Notably, on November 6, media reports indicated that informed sources revealed that Apple has engaged in discussions with Foxconn regarding the production of artificial intelligence servers in Taiwan. Given that Apple plans to use the produced servers primarily for its own needs, the quantity being discussed with Foxconn is relatively small, and negotiations between the two parties have not yet reached a final agreement

According to Zhitong Finance APP, FIH (02038) rose nearly 7% during the trading session, and as of the time of writing, it is up 5.75%, priced at HKD 0.92, with a transaction volume of HKD 12.2884 million.

In terms of news, FIH previously announced its third-quarter performance, with operating revenue and other operating income of USD 2.26 billion, a year-on-year decrease of 5.3%, and a profit of USD 5.432 million, compared to a loss of USD 20.365 million in the same period last year, achieving a turnaround to profitability. The company expects sales in fiscal year 2024 to decline year-on-year, mainly due to intense competition and changes in customer outsourcing strategies leading to a decrease in sales. Although operating expenses have decreased, low asset utilization remains a major challenge. The company expects financial performance to improve in the second half of the year through measures such as optimizing the customer portfolio and reducing expenses.

It is worth noting that on November 6, media reports indicated that informed sources revealed that Apple has been in contact with Foxconn to discuss matters related to the production of artificial intelligence servers in Taiwan, China. Given that Apple plans to use the produced servers primarily for its own needs, the production quantity being discussed with Foxconn is relatively small, and negotiations between the two parties have not yet reached a final agreement

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