Foreign brokerage maintains ‘buy’ rating on Hon Hai shares

Focus Taiwan
Date: 2019/07/27
By: Jeffrey Wu and Frances Huang

Taipei, July 27 (CNA) An Asia-based brokerage has maintained a "buy" recommendation on shares in Hon Hai Precision Industry Co., the world's largest contract electronics maker, saying the company's fundamentals remain sound.

In a research note earlier this week, the Asian securities house said concerns over the succession at Hon Hai have already been factored into its share price after Terry Gou (郭台銘) announced in mid-April that he would take part in the opposition Kuomintang (KMT) presidential primary and step down from the chairmanship.

After Gou stepped back from the day-to-day operations of Hon Hai, the board of directors chose Liu Young-way (劉揚偉), who was in charge of the group's semiconductor business, to succeed him in June.

In July, Gou lost to Kaohsiung Mayor Han Kuo-yu (韓國瑜) in the primary for the 2020 presidential race.

Local political commentators are watching to see what Gou does next, amid speculation that he could run as an independent.    [FULL  STORY]

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