Strong market position as the world's largest electronic manufacturing services (EMS) provider by market share. Strong operating efficiency backed by an unrivalled vertically integrated production model and increasing automation. Heightening industry risks amid increasing competition and persistent margin pressure. High customer concentration. Strong balance sheet with high cash balance and zero adjusted debt. Sustainable and strong free operating cash flow. Exceptional liquidity. The positive outlook reflects our view that Hon Hai Precision Industry Co. Ltd. is likely to sustain its strong free operating cash flow and very strong balance sheet over the next one to two years. We believe this could offer a sufficient buffer against potential business volatility from competition and customer and product concentration risks, if the company
