Hon Hai's revenue decreased by 14% in the second quarter, but its net profit increased by 1.5 times to NT $33 billion in the quarter
Hon Hai Group held a legal conference on August 14th, announcing its financial report and outlook for the second quarter of 2023. Hon Hai's revenue in the second quarter was NT $1.3 trillion (unit: same below), a quarterly decrease of 11% and an annual decrease of 14%; The gross profit margin is 6.41%, with a quarterly increase of 0.37 percentage points and an annual increase of 0.01 percentage points; The operating profit margin decreased slightly year-on-year (MoM) by 2.37%; The net profit margin is 2.53%, with a quarterly increase of 1.65 percentage points and an annual increase of 0.31 percentage points.
Despite the decline in revenue in the second quarter of Hon Hai, supported by the improvement in non operating income, the net profit after tax reached 33 billion yuan, a significant increase of 157% month on month and a decrease of 1% year on year. In terms of other data, Hon Hai Q2's net income per share was 2.38 yuan, a significant increase from 0.93 yuan in the first quarter, reversing the losses caused by investing in Sharp in the first quarter.
Looking ahead, Hon Hai has lowered its operating targets for this year, shifting from its original goal of maintaining parity with last year to a slight decline. From a product perspective, consumer electronics products will benefit from shipments such as iPhone 15, which will show a significant increase compared to the previous quarter. However, due to a large base in the same period last year, there may be a slight decline compared to the same period last year. Cloud and network terminal products are estimated to remain unchanged from the first quarter and have significantly declined compared to the same period last year; Components and other products are expected to experience significant quarterly growth, while also showing a slight increase compared to last year.
Liu Yangwei pointed out that the second half of the year has entered the traditional peak season, and the strength of market recovery remains to be observed; The recovery of the personal computer industry is slow and is expected to begin in the second half of the year; However, artificial intelligence (AI) servers can still grow strongly; The demand for cloud service providers can still grow, but other types of cloud products have not shown signs of improvement.
Liu Yangwei believes that there are many external variables around the world, including geopolitical tensions, global inflation, monetary tightening, and other factors. The future market conditions need to be observed.
Despite the decline in revenue in the second quarter of Hon Hai, supported by the improvement in non operating income, the net profit after tax reached 33 billion yuan, a significant increase of 157% month on month and a decrease of 1% year on year. In terms of other data, Hon Hai Q2's net income per share was 2.38 yuan, a significant increase from 0.93 yuan in the first quarter, reversing the losses caused by investing in Sharp in the first quarter.
Looking ahead, Hon Hai has lowered its operating targets for this year, shifting from its original goal of maintaining parity with last year to a slight decline. From a product perspective, consumer electronics products will benefit from shipments such as iPhone 15, which will show a significant increase compared to the previous quarter. However, due to a large base in the same period last year, there may be a slight decline compared to the same period last year. Cloud and network terminal products are estimated to remain unchanged from the first quarter and have significantly declined compared to the same period last year; Components and other products are expected to experience significant quarterly growth, while also showing a slight increase compared to last year.
Liu Yangwei pointed out that the second half of the year has entered the traditional peak season, and the strength of market recovery remains to be observed; The recovery of the personal computer industry is slow and is expected to begin in the second half of the year; However, artificial intelligence (AI) servers can still grow strongly; The demand for cloud service providers can still grow, but other types of cloud products have not shown signs of improvement.
Liu Yangwei believes that there are many external variables around the world, including geopolitical tensions, global inflation, monetary tightening, and other factors. The future market conditions need to be observed.