2317:TWSEHon Hai Precision Industry Co., Ltd. Analysis
Data as of 2026-03-10 - not real-time
NT$210.50
Latest Price
7/10Risk
Risk Level: Medium
Executive Summary
Hon Hai is trading at TWD 210.5, below its 20‑day (224.2) and 50‑day (225.9) SMAs, with RSI at 39 indicating near‑oversold conditions and a bearish MACD histogram. Recent news highlights a 32% December sales jump and a Goldman Sachs Conviction Buy reaffirmation, supporting a short‑term rebound despite the current price weakness.
Fundamentally, the company posts 11% revenue growth, a forward PE of 12.1 versus an industry average of 36.9, and a dividend yield of 2.8% with a 43% payout ratio, suggesting decent income potential. However, a DCF‑derived fair value of ~TWD 153 and a negative free‑cash‑flow signal that the stock may be priced above intrinsic value, while a 67% debt‑to‑equity ratio adds leverage risk.
Fundamentally, the company posts 11% revenue growth, a forward PE of 12.1 versus an industry average of 36.9, and a dividend yield of 2.8% with a 43% payout ratio, suggesting decent income potential. However, a DCF‑derived fair value of ~TWD 153 and a negative free‑cash‑flow signal that the stock may be priced above intrinsic value, while a 67% debt‑to‑equity ratio adds leverage risk.
Market Outlook
Short Term
< 1 yearPositive
Model confidence: 6/10
Key Factors
- Bearish MACD but RSI near oversold suggests a technical bounce
- Recent 32% December sales surge and Goldman Sachs Conviction Buy
- Price below short‑term moving averages offering a discount entry
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Forward PE of 12.1 indicates strong value relative to peers
- Analyst consensus target around TWD 300 implies >40% upside
- Sustained revenue growth and expanding cloud/EV component exposure
Long Term
> 3 yearsNeutral
Model confidence: 7/10
Key Factors
- High debt‑to‑equity (67%) and negative free cash flow raise leverage concerns
- Geopolitical exposure across Taiwan, China and the United States
- Stable dividend yield of 2.8% provides income while growth moderates
Key Metrics & Analysis
Financial Health
Revenue Growth11.00%
Profit Margin2.50%
P/E Ratio15.7
ROE11.82%
ROA3.25%
Debt/Equity67.44
P/B Ratio1.8
Op. Cash FlowNT$135.1B
Free Cash FlowNT$-19816253440
Industry P/E36.8
Technical Analysis
TrendNeutral
RSI39.0
SupportNT$206.00
ResistanceNT$253.50
MA 20NT$224.20
MA 50NT$225.87
MA 200NT$204.71
MACDBearish
VolumeIncreasing
Fear & Greed Index75.89
Valuation
Fair ValueNT$153.45
Target PriceNT$300.33
Upside/Downside42.68%
GradeOvervalued
TypeBlend
Dividend Yield2.76%
Risk Assessment
Beta0.79
Volatility39.60%
Sector RiskMedium
Reg. RiskMedium
Geo RiskHigh
Currency RiskMedium
Liquidity RiskLow
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.