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

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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>Hon Hai shares have rallied to new 52-week highs; We update our model and sanity check the company's 2025E gross margin target.</li>
<li>Hon Hai can realize its target higher gross margin as its revenue mix changes between its legacy contract manufacturing and components/ higher value products revenue.</li>
<li>We maintain our 12-month price target of NT$155 per share, 35% above current levels and higher than the entire Street.</li>
</ul>


Hon Hai shares have rallied to new 52-week highs; We update our model and sanity check the company's 2025E gross margin target.
Hon Hai can realize its target higher gross margin as its revenue mix changes between its legacy contract manufacturing and components/ higher value products revenue.
We maintain our 12-month price target of NT$155 per share, 35% above current levels and higher than the entire Street.


Hon Hai: Hits New 52-Week Highs; Sanity Checking Management Guidance Shows Still More Upside