The ratings on Hon Hai Precision Co. Ltd. (Hon Hai) reflect the company's low-cost competitiveness, strong mechanical engineering expertise, consistently solid operating performance, and satisfactory financial profile. However, these factors are moderated by the company's high degree of customer concentration, its exposure to short product cycles in volatile end-markets, and ongoing pricing pressure. Hon Hai is the world's largest manufacturer of personal computer (PC) connectors and enclosures. It is also the third-largest global provider of electronic manufacturing services (EMS) for original equipment manufacturers. Despite difficult market conditions in the global high-technology industry in recent years, Hon Hai has experienced very strong organic growth in sales, which increased to Taiwan dollar (NT$) 371 billion for fiscal 2003 (ended Dec. 31, 2003)
