Hon Hai Precision Industry Co Ltd
2317: XTAI (TWN)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
TWD 398.00 | Zrzc | Ptrwvqwg |
Hon Hai Looking to Electric Vehicles and AI Servers to Increase Revenue and Margins
Business Strategy and Outlook
Apple, which has established itself as a consumer electronics behemoth over the past decade, has propelled Hon Hai into the world’s largest contract manufacturer. Despite its entrenched position in Apple, which accounts for around 55% of the group’s revenue, Hon Hai is faced with increasing competition in the traditional assembly business at a time when smartphone demand has matured. As a result, its returns on invested capital have fallen to 12% in 2022 from 23% in 2016.