Non-consolidated revenue of Hon Hai Precision,Taiwan's leading manufacturer,jumped 27.58%sequentially to NT$351.733 billion in November,a performance far exceeding market expectation,reported the company yesterday(Nov.10).Institutional investors expected the company's revenue will continue to grow robustly in December,boosting its non-consolidated revenue to over the NT$1 trillion mark in the fourth quarter,the first domestic enterprise to rack up quarterly revenue in excess of NT$1 trillion.
Institutional investors attributed the exceptional revenue performance of Hon Hai in November to enhancement of yield rate for iPhone 5,jacking up shipment.In response to the strong fundamentals,share price of Hon Hai advanced NT$0.6,closing at NT$96.1,yesterday,the highest in two and a half months.
A Hong Hai manager said yesterday that major growth driver for November revenue was consumer electronics,followed by communications products,but computer products had a weaker performance in the month.Institutional investors stated that the company's robust revenue growth in November is associated with the solution of the production bottleneck for iPhone 5,adding that revenue will ascend to even higher level in December.
The company's non-consolidated revenue of NT$351.733 billion represents 14.5%growth year-on-year and 27.58%growth over October's NT$275.7 billion;institutional investors originally predicted that the company's revenue will reach NT$340 billion in the month at most.The company's monthly revenue exceeds the whole-year revenue of many domestic major enterprises,such as Inventec.
Institutional investors predicted that Hon Hai's non-consolidated revenue in the fourth will top NT$1 trillion,compared with NT$919.7 billion in the same period last year,marking a new high for quarterly revenue of Taiwanese enterprises.
Hon Hai racked up non-consolidated revenue of NT$2.8585 trillion in the first 11 months,which will top the NT$3 trillion mark for the whole year.
In a research paper released yesterday,CLSA Asia-Pacific Markets pointed out that with iPhone 5 going to hit the markets in 50 countries worldwide,including Taiwan and mainland China,channel players will stock up aggressively,enabling Hon Hai to rack up 29%sequential growth for revenue in the fourth quarter.Operating profit rate will hit 3.5%in the fourth quarter,up 0.1 of a percentage point over the third quarter.CLSA revised upward its forecast of Hon Hai's profits by 18%and 8.9%,respectively,this year and next year,while enhancing the target share price for the company to NT$95.7,up from original NT$86.5.
