Brokerages raise target prices on Hon Hai shares after Q3 results

Focus Taiwan
Date: 2019/11/16
By: Jeffrey Wu and Frances Huang

Taipei, Nov. 16 (CNA) Some foreign brokerages have raised their target price on shares in iPhone assembler Hon Hai Precision Industry Co. after the world's largest contract electronics maker reported an 80 percent sequential increase in net profit for the third quarter.

In a research note, a securities house based in Hong Kong said the bottom line of Hon Hai, also known as Foxconn on the global market, was partly strengthened in the July-September period by improving the profitability of several of its major subsidiaries, including Hong Kong-listed FIH Mobile Ltd., which rolls out devices for international brands in the non-Apple Inc. camp.

The better operations of its subsidiaries helped Hon Hai report higher profit margins boosting the parent company's net profit in the third quarter, the brokerage said, adding it has hiked its target price on the stock from NT$105 to NT$112 (US$3.67) and left a "buy" rating unchanged.

On Friday, shares of Hon Hai, the second largest listed company in Taiwan in terms of market capitalization, rose 0.90 percent to close at NT$90.10 on the Taiwan Stock Exchange, where the benchmark weighted index ended up 0.66 percent at 11,525.60 points as large cap tech stocks, including Hon Hai, served as a driver to the gains.    [FULL  STORY]

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