Hon Hai Precision Industry (2317) Q3 2024 earnings summary

Executive summary

• Q3 FY24 revenue reached NTD 1,854.6 billion, up 20.2% year-over-year, with net income attributable to owners at NTD 49.3 billion, up 14.4% year-over-year.

• Consolidated revenue for the nine months ended September 30, 2024, was NTD 4,729.1 billion, up 9.7% year-over-year.

• Operating profit for Q3 FY24 was NTD 54.8 billion, up 18.7% year-over-year.

• Smart Consumer Electronics accounted for 45% of Q3 revenue, followed by Cloud and Networking at 32%, Computing at 17%, and Components/Other at 6%.

Financial highlights

• Gross profit margin for Q3 FY24 was 6.19%, slightly down year-over-year; net profit margin was 2.66%, a minor decrease from the prior year.

• Basic EPS for Q3 FY24 was NTD 3.55, up from NTD 3.11 in Q3 FY23.

• Cash and cash equivalents at September 30, 2024, were NTD 791.1 billion, down 35% year-over-year.

• Total assets as of September 30, 2024, were NTD 4,272.3 billion, up 8% year-over-year.

• Free cash flow for the first nine months was negative NTD 18,634 million, compared to positive NTD 286,153 million in the prior year period.

Outlook and guidance

• Q4 FY24 expected to see sequential growth in Smart Consumer Electronics and Cloud/Networking segments.

• FY24 guidance indicates year-over-year growth in Smart Consumer Electronics and Cloud/Networking, with stable or moderate growth in other segments.

• FY25 outlook highlights continued focus on AI industry development, with political, economic, and monetary policy factors influencing performance.

• Management targets a gearing ratio below 70% and maintains focus on capital discipline and cash flow.

• Completed pricing for a new USD700 million overseas convertible bond in October 2024.