The rating on Hon Hai Precision Industry Co. Ltd. (Hon Hai) reflects its strong competitive position, consistently robust return on capital, improving cash flow, and low leverage. The rating is somewhat constrained by the high business risks associated with the global contract electronics manufacturing services industry. Hon Hai is expected to maintain high growth momentum over the next few quarters as a result of its increased market share and continued outsourcing in the global high-tech industry. Hon Hai is the world's largest provider of electronics manufacturing services to the computing, consumer electronics, networking, and communications industries. The company's strong competitive position is underpinned by its mechanical engineering expertise, a low-cost vertically integrated production process, and global logistics capability. These strengths
