Strong market position as the world's largest EMS provider by market share. Strong operating efficiency backed by an unrivalled vertically integrated production model. Heightening industry risks amid increasing competition and persistent margin pressure. High customer concentration. Relatively high cash balance with modest adjusted debt leverage. Strong operating cash flow. Strong liquidity. The stable outlook reflects our view that Hon Hai Precision Industry Co. Ltd. will be able to maintain its profitability and cash flow protection measures over the next one to two years reflected in a ratio of adjusted debt to EBITDA below 1.5x. The rating may come under pressure if Hon Hai's profitability, in terms of return on capital consistently, falls below 12% due to deteriorating cost and technology
