Hon Hai September sales hit record, shares end up

Taipei, Oct. 7 (CNA) Shares of Taiwan-based manufacturing giant Hon Hai Precision Industry Co. closed higher Tuesday after its September revenue hit a new monthly high on the back of growing global demand for artificial intelligence applications, dealers said.

However, gains in the AI server maker were capped toward the end of the session as buying shifted to its counterparts amid rapid rotational buying among AI-related hardware stocks, the dealers added.

After the market closed Monday for a public holiday, shares of Hon Hai, the second-largest cap stock in the local market, rose 0.88 percent to end at NT$228.50 (US$7.52) on Tuesday, coming off the day's high of NT$231.50 on the Taiwan Stock Exchange.

"Hon Hai's gains largely reflected its strong September sales, although its momentum was compromised to some extent as buying rotated to other AI server makers such as Quanta Computer Inc.," Cathay Futures Consultant analyst Tsai Ming-han said. Quanta Computer rose 2.83 percent to end at NT$308.50.

On Sunday, Hon Hai, also known globally as Foxconn, reported that it had posted a record NT$837.1 billion in consolidated sales in September, up 38.01 percent from a month earlier and 14.19 percent from a year earlier.

In the third quarter, Hon Hai's consolidated sales also hit a quarterly record of NT$2.06 trillion, up 14.47 percent from the previous quarter and 10.99 percent from a year earlier.

In the first nine months of this year, Hon Hai generated about NT$5.50 trillion in consolidated sales, up 16.27 percent from a year earlier.

Month on month, Hon Hai saw strong growth in its cloud and networking device and computer electronics sales due to an increase in AI server rack shipments. Revenue in its computer electronics division also rose sharply as buyers built up inventories, while revenue from computing and smart consumer electronics products remained flat.

Year on year, revenue from Hon Hai's smart consumer electronics, electronic components, and cloud and networking divisions rose significantly, while the company's computing division reported flat sales growth.

Market analysts said iPhone assembler Hon Hai benefited from the debut of the latest iPhone 17 series in September.

Looking ahead, Hon Hai said fourth-quarter sales are expected to grow from the third quarter due to peak-season effects and continued strong demand for AI applications.

Hon Hai has scheduled an investor conference for Nov. 12 to detail its third-quarter results and update its guidance for 2025.