Overview Key strengths Key risks The world's largest electronics manufacturing service (EMS) provider with a superior leading edge over competitors. Moderating but still-high customer and end-application concentration. Strong efficiency with an unrivalled integrated production model and increasing use of automation. Intense competition and persistent margin pressure with strong buyer power. Conservative debt appetite with a net cash position. High manufacturing capacity concentration in China, albeit with gradually improving diversification. Sustainable free operating cash flow. Our base case for Hon Hai Precision Industry Co. Ltd. indicates 16%-21% sales growth in 2025, following a 7% drop in 2023 and 11.3% growth in 2024. We anticipate strong demand for AI servers will largely drive this growth and offset sluggish recovery in smartphone demand.
