Highlights

Foxconn reported outstanding revenue for June, Q2, and the first half of the year, setting new records for each period. The company expects continued growth into Q3 driven by strong performance in cloud network products and ICT during peak season. Despite global political and economic uncertainties and currency fluctuations, Foxconn remains optimistic about its future performance.

Sentiment Analysis

• The sentiment towards Foxconn's performance is predominantly positive, driven by record-breaking revenue figures and optimistic forecasts for Q3.
• Despite uncertainties such as geopolitical issues and currency fluctuations, the focus remains on strong product demand, particularly in cloud services.
• Investors and stakeholders may have concerns, but the company's clear growth trajectory provides reassurance.

Article Text

Foxconn, identified by its stock number 2317-TW, announced today that it achieved remarkable revenues in June amounting to TWD 540.237 billion. Although this represents a month-over-month decline of 12.26%, it marks a year-over-year increase of 10.09%. The second-quarter revenue was recorded at TWD 1.79 trillion, showing a quarterly rise of 9.45% and a yearly climb of 15.82%. The first half of the year's revenue almost reached TWD 3.44 trillion, indicating a 19.68% increase from the prior year, all of which sets record highs for the respective periods.

Looking ahead to the third quarter, Foxconn anticipates that cloud network products will maintain a strong growth trend. Additionally, as information and communication technology (ICT) products enter the high-demand season in the latter half of the year, operations are expected to heat up. The company projects sequential and annual growth in its Q3 operations. However, it remains vigilant about the impacts of global geopolitical and economic conditions, as well as currency rate changes.

In terms of US dollar valuation, June's revenue dropped by about 9.1% month-over-month but increased by approximately 17.8% year-over-year. The second quarter's revenue achieved the company's expectations for quarterly growth and surpassed forecasts for annual growth, with US dollar revenue up by about 14.1% quarterly and 18.6% annually. The first half's US dollar revenue grew around 18.4% year-over-year.

Foxconn elucidated that among its four major product categories, monthly performance saw cloud network products remain roughly stable. However, the pull effect and currency rate fluctuations caused a decline in consumer electronics, computer components, and other product segments compared to the previous month.

Compared year on year, June's cloud network products exhibited robust growth facilitated by increased demand for AI cloud products. Consumer electronics benefited from the launch of new entertainment devices with strong demand pull, showing significant growth. However, components and other products remained stable, while computer terminals experienced a decline.

In the second quarter, comparing year on year, both cloud network products and other components showed strong annual growth. Despite the launch of new entertainment devices, consumer electronics were impacted by currency changes and held steady. Computer terminals, meanwhile, saw a slight decline. Over the first half of the year, cloud network, components and other products displayed substantial growth, with computer terminal products showing marked improvement, though consumer electronics remained stable.

Key Insights Table