Managing Director, Zero One, Zero One

Vincent Fernando, CFA

20 years of experience researching capital markets in Asia and the USA.

Managing Director, Zero One

Taiwan Tech Weekly: Earnings Insights Emerging for Memory, Mobiles, PCs, and Autos

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Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Equity Bottom-Up

Hon Hai Precision Industry / Equity Bottom-Up

<ul>
<li>Some workers have been fleeing Hon Hai's largest iPhone production facility in Zhengzhou, China over the weekend, due to COVID-19 outbreak lock-downs.</li>
<li>Even a significant hit to 4Q22E earnings is unlikely to change the 2023E and 2024E financial outlook or valuation multiples for the company, in our view.</li>
<li>Even after considering that Q4 is a high production period, if we assume November is about 1/10th of annual production, then only an estimated 2% annual reduction is at risk.</li>
</ul>


Some workers have been fleeing Hon Hai's largest iPhone production facility in Zhengzhou, China over the weekend, due to COVID-19 outbreak lock-downs.
Even a significant hit to 4Q22E earnings is unlikely to change the 2023E and 2024E financial outlook or valuation multiples for the company, in our view.
Even after considering that Q4 is a high production period, if we assume November is about 1/10th of annual production, then only an estimated 2% annual reduction is at risk.


Foxconn / Hon Hai: Quick-Take On The Zhengzhou Outbreak; Accumulate on Weakness