Hon Hai of Taiwan Posts 2014 Revenue of NT$4.21 T., Up 6.5% YoY

Hon Hai Precision Ind. Co. Ltd., recognized as Taiwan's largest manufacturer and one of the world's biggest EMS (electronics manufacturing services) providers, recently announced 2014 consolidated revenue of NT$4.21 trillion (US$140.4 billion), a 6.5% increase from the previous year.

Both Hon Hai's December and Q4 consolidated revenue of 2014 hit record highs, meeting most investors' expectations. The company reported December 2014 consolidated revenue of NT$515.6 billion (US$17.19 billion), up 0.15% month-on-month (MoM) and about 5% year-on-year (YoY), with Q4 consolidated revenue of NT$1.5 trillion (US$49.97 billion), up 57.7% quarter-on-quarter (QoQ).

Regarding product categories, Hon Hai said that shipments of consumer electronics and telecom products in December were better than the previous month, while that of PC products remained flat.

Driven by widely simmering sales of Apple's iPhone6 smartphones, Hon Hai enjoyed buoyant Q4 results, with institutional investors estimating the company's Q4 net earnings per share (EPS) at about NT$3.06 (US$0.1), and whole-2014 EPS about NT$8.05 (US$0.27).

Coupled with record-setting demand for iPhone 6 and 6 Plus, institutional investors said that Hon Hai's shipment momentum is expected to last throughout February to drive the company's operation in Q1, 2015, a traditionally low season. Some investors forecast that Hon Hai's Q1, 2015 revenue is expected to reach about NT$1.1 trillion (US$36.7 billion), a 26.5% QoQ decrease but a 24.5% YoY increase.

Thanks to the strong demand for Apple's iPad Air 2, Hon Hai's factories in Chengdu (Sichuang Province) and Shenzen (Guangdong Province) of China have been busy; while many of Hon Hai's cellphone customers are scheduled to launch new models in H1, 2015, to further add steam to the contract assembler's shipments.