Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

Equity Bottom-Up

Hon Hai Precision Industry / Equity Bottom-Up

<ul>
<li>Hon Hai's 4Q23 profit beat consensus and management has become more bullish on 2024E revenue thanks to demand for AI servers.</li>
<li>Guided 40% YoY growth expected for AI servers; Separately, Hon Hai reportedly could have won a major AI server order from HP Enterprise according to Digitimes.</li>
<li>Hon Hai shares are finally moving; We see room for continued upside based on re-rating of the company's valuation. Positive news flow potential through Nvidia's GTC conference next week.</li>
</ul>


Hon Hai's 4Q23 profit beat consensus and management has become more bullish on 2024E revenue thanks to demand for AI servers.
Guided 40% YoY growth expected for AI servers; Separately, Hon Hai reportedly could have won a major AI server order from HP Enterprise according to Digitimes.
Hon Hai shares are finally moving; We see room for continued upside based on re-rating of the company's valuation. Positive news flow potential through Nvidia's GTC conference next week.


Hon Hai: Beat & Raise; Further Valuation Upside; AI Server Product Announcements Next Week

Tracking developments across tech supply chains, Tech Supply Chain Tracker

Tech Supply Chain Tracker

Tracking developments across tech supply chains

<ul><li>Nokia and Foxconn are collaborating to manufacture 5G products in northern Vietnam, potentially boosting the country's tech industry.</li><li>Huawei's entry into the automotive tier-1 market raises questions about its impact on traditional car manufacturers.</li><li>The UK semiconductor industry and Taiwan Semiconductor Manufacturing Company (TSMC) are highlighted at London Tech Week, showcasing their importance in the tech world.</li></ul>

Nokia and Foxconn are collaborating to manufacture 5G products in northern Vietnam, potentially boosting the country's tech industry.Huawei's entry into the automotive tier-1 market raises questions about its impact on traditional car manufacturers.The UK semiconductor industry and Taiwan Semiconductor Manufacturing Company (TSMC) are highlighted at London Tech Week, showcasing their importance in the tech world.

Tech Supply Chain Tracker (15-Jun-2024): 5G products made by Nokia and Foxconn in northern Vietnam.

<ul><li>Foxconn's Hyderabad factory to begin producing Airpods in August, as confirmed by Telangana official. </li><li>Qualcomm CEO backs Arm's forecast of 50% Windows PC market share in 5 years. </li><li>UnaBiz achieves record-breaking 90% accuracy with AI-enabled Wi-Fi geolocation; Nvidia and Foxconn unveil advanced computing center in Taiwan. EU establishes AI office to enforce AI Act. Tower Semi awaits wafer fab approval in India post-elections. Win Semiconductors propelled by mobile phone surge into 2024.</li></ul>

Foxconn's Hyderabad factory to begin producing Airpods in August, as confirmed by Telangana official. Qualcomm CEO backs Arm's forecast of 50% Windows PC market share in 5 years. UnaBiz achieves record-breaking 90% accuracy with AI-enabled Wi-Fi geolocation; Nvidia and Foxconn unveil advanced computing center in Taiwan. EU establishes AI office to enforce AI Act. Tower Semi awaits wafer fab approval in India post-elections. Win Semiconductors propelled by mobile phone surge into 2024.

Tech Supply Chain Tracker (06-Jun-2024): Foxconn Hyderabad factory to make Airpods from August.

<ul><li>SK Hynix leads in next-gen HBM innovation, setting pace with Indian startup FermionIC aiming for market domination.</li><li>AMD releases new processors for data centers and PCs promising improved performance and efficiency with Instinct, Ryzen, and EPYC.</li><li>India partners with Taiwan for semiconductor ecosystem development, while Russia plans to produce 350nm chips with self-developed EUV machines in 2024.</li></ul>

SK Hynix leads in next-gen HBM innovation, setting pace with Indian startup FermionIC aiming for market domination.AMD releases new processors for data centers and PCs promising improved performance and efficiency with Instinct, Ryzen, and EPYC.India partners with Taiwan for semiconductor ecosystem development, while Russia plans to produce 350nm chips with self-developed EUV machines in 2024.

Tech Supply Chain Tracker (04-Jun-2024): Chinese semiconductors & tech.

<ul>
<li>We hosted a conference call with Elan Microelectronics management; We view the company as a Structural Long position for the AI PC upgrade cycle.</li>
<li>From the company's perspective, significant impact from AI PC demand will come but not until 4Q24E or 1H25E. However, supply chain excess inventory improved and prepping for upcycle.</li>
<li>An estimated 90% of AI PC models launched at CES 2024 use Elan's products in their design; Elan well positioned for the upcycle and entrenching its position. Maintain Structural Long.</li>
</ul>


We hosted a conference call with Elan Microelectronics management; We view the company as a Structural Long position for the AI PC upgrade cycle.
From the company's perspective, significant impact from AI PC demand will come but not until 4Q24E or 1H25E. However, supply chain excess inventory improved and prepping for upcycle.
An estimated 90% of AI PC models launched at CES 2024 use Elan's products in their design; Elan well positioned for the upcycle and entrenching its position. Maintain Structural Long.


TechChain Insights: Call with Elan Micro; AI PC Significant Uptake 4Q24/1H25; Supply Chain Preparing

Taiwan

Hon Hai Precision Industry Co., Ltd. provides electronic manufacturing services for computers, communications, and consumer electronic products.  The Company's business operations include desktop and notebook PC assembly, connector production, cable assembly, PCB assembly, handset manufacturing, networking equipment, and other consumer electronic devices manufacturing.

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Hon Hai Precision Industry (2317 TT)

Hon Hai: Beat & Raise; Further Valuation Upside; AI Server Product Announcements Next Week

Hon Hai's delivers strong 4Q23 profit and bullish outlook on 2024 revenue driven by demand for AI servers. Potential major order from HP...

Vincent Fernando, CFA

Tech Supply Chain Tracker (15-Jun-2024): 5G products made by Nokia and Foxconn in northern Vietnam.

Nokia and Foxconn are teaming up to produce 5G products in northern Vietnam, while Huawei makes gains in automotive tier-1 and London Tech Week...

Tech Supply Chain Tracker

Tech Supply Chain Tracker (06-Jun-2024): Foxconn Hyderabad factory to make Airpods from August.

Foxconn's Hyderabad factory to produce Airpods; Arm predicts 50% of Windows PC market; UnaBiz achieves 90% accuracy with AI geolocation; Nvidia and...

Tech Supply Chain Tracker

Tech Supply Chain Tracker (04-Jun-2024): Chinese semiconductors & tech.

China's semiconductor industry advances as SK Hynix leads in innovation, AMD releases new processors, Indian startup FermionIC aims for market...

Tech Supply Chain Tracker

TechChain Insights: Call with Elan Micro; AI PC Significant Uptake 4Q24/1H25; Supply Chain Preparing

Elan Microelectronics is poised for growth in the AI PC upgrade cycle, with a strong position in the market and potential impact expected in late...

Vincent Fernando, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Hon Hai: Beat & Raise; Further Valuation Upside; AI Server Product Announcements Next Week

​Hon Hai's delivers strong 4Q23 profit and bullish outlook on 2024 revenue driven by demand for AI servers. Potential major order from HP...

Vincent Fernando, CFA

Tech Supply Chain Tracker (15-Jun-2024): 5G products made by Nokia and Foxconn in northern Vietnam.

Nokia and Foxconn are teaming up to produce 5G products in northern Vietnam, while Huawei makes gains in automotive tier-1 and London Tech Week...

Tech Supply Chain Tracker

Tech Supply Chain Tracker (06-Jun-2024): Foxconn Hyderabad factory to make Airpods from August.

Foxconn's Hyderabad factory to produce Airpods; Arm predicts 50% of Windows PC market; UnaBiz achieves 90% accuracy with AI geolocation; Nvidia and...

Tech Supply Chain Tracker

Tech Supply Chain Tracker (04-Jun-2024): Chinese semiconductors & tech.

China's semiconductor industry advances as SK Hynix leads in innovation, AMD releases new processors, Indian startup FermionIC aims for market...

Tech Supply Chain Tracker

TechChain Insights: Call with Elan Micro; AI PC Significant Uptake 4Q24/1H25; Supply Chain Preparing

​Elan Microelectronics is poised for growth in the AI PC upgrade cycle, with a strong position in the market and potential impact expected in late...

Vincent Fernando, CFA

Hon Hai's delivers strong 4Q23 profit and bullish outlook on 2024 revenue driven by demand for AI servers. Potential major order from HP...

Elan Microelectronics is poised for growth in the AI PC upgrade cycle, with a strong position in the market and potential impact expected in late...