Hon Hai Q3 earns 5.51 yuan per share, and AI cabinet shipments are expected to increase by double digits next year

Hon Hai benefited from strong demand for AI servers, which led to the expansion of its operating scale and optimization of its product portfolio. In the third quarter of this year, Hon Hai earned 5.51 yuan per share. (File photo)

[Reporter Fang Weijie/Taipei Report] Hon Hai (2317) benefited from the strong demand for AI servers, which led to the expansion of its operating scale and the optimization of its product portfolio. In the third quarter of this year, its revenue exceeded the 3 trillion yuan mark, and its net profit attributable to owners of the parent company reached 77.524 billion yuan. An increase of 34%, with earnings per share of 5.51 yuan, a new single-quarter high; looking forward to the market outlook, Hon Hai revised its operating outlook for this year and is optimistic that AI cabinet shipments will grow by double digits next year. As diversified solutions and customer base continue to expand, market share is expected to further increase.

Hon Hai's third-quarter revenue was 315.634 billion yuan, a quarterly increase of 19% and an annual increase of 46%; gross profit margin was 6.02%, a quarterly decrease of 0.1 percentage points and an annual decrease of 0.33 percentage points; operating profit margin was 3.83%, a quarterly increase of 0.07% percentage points, an annual increase of 0.4 percentage points; net profit attributable to owners of the parent company was 77.524 billion yuan, a quarterly increase of 29% and an annual increase of 34%; earnings per share was 5.51 yuan, better than 4.27 yuan in the second quarter and 4.15 yuan in the same period last year.

In the first three quarters of this year, Hon Hai's revenue was 7.661062 billion yuan, an annual increase of 39%; gross profit margin was 6.1%, an annual decrease of 0.18 percentage points; operating profit rate was 3.73%, an annual increase of 0.57 percentage points; net profit attributable to owners of the parent company was 187.417 billion yuan, an annual increase of 30%; earnings per share was 13.35 yuan, which was better than 10.38 yuan in the same period last year.

Hon Hai pointed out that with the improvement of product portfolio and operation scale, core profits continued to grow. Operating profits in the first three quarters increased by 64.6% annually, which was higher than the revenue growth of 39.5%. The operating profit rate of 3.73% also exceeded the company's 3% target. In addition, the return on equity (ROE) in the first three quarters reached 10.44%, higher than 8.79% in the same period last year, and continues to move towards the target of 12%.

Looking forward to the fourth quarter, Hon Hai expects that its overall operations will show strong growth quarter-to-quarter and year-to-year, with cloud networks and consumer smart products being the main growth drivers. As the demand for AI servers continues to expand, AI cabinet shipments are expected to increase by double digits in the fourth quarter, and AI server revenue will also increase compared with the third quarter.

As for full-year operations, Hon Hai has simultaneously revised its outlook for this year. In addition to maintaining strong growth in the field of cloud network products, the outlook for consumer smart products has also improved compared to the previous period, reflecting the momentum of major product demand and AI infrastructure construction.

Looking forward to 2027, Hon Hai is cautiously optimistic about its overall operations. It expects AI cabinet shipments to grow by double digits and will expand its customer base through AI diversified solutions to further increase its market share. The company also reminded that it must still pay attention to variables such as component supply, political and economic situation, inflation and monetary policy next year.