# Hon Hai Precision Industry (2317.TW)

Canonical: https://gigainvestors.com/s/2317.TW

Analysis as of: 2026-10-16T07:33:40.501Z. Financial observations: FY2000–FY2026.

Listing currency: TWD. Reporting currency: TWD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: TWD 239.50 per share; close as of 2026-10-15.

Estimated value: low TWD 252.85 per share, central TWD 285.61 per share, high TWD 317.02 per share. Buy at or below the central value TWD 285.61 per share. Valuation as of 2026-10-16T07:33:40.501Z; scenarios are not confidence intervals.

Expected annual return: 12.3% at the stated quote. About 12.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; TW 10-year bond 2.0% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.16×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.02×

- FY2018: 0.03×

- FY2019: 0.02×

- FY2020: 0.02×

- FY2021: 0.02×

- FY2022: 0.03×

- FY2023: 0.03×

- FY2024: 0.03×

- FY2025: 0.03×

- LTM to Jun 2026: 0.04×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 10.6%

- ROIC, second-lowest year: 9.1%

- Typical minus recent gross margin: 0.0 pp

- Typical gross margin (annual median): 6.1%

- Recent gross margin (lower of latest and 3-year median): 6.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.6%

- ROIC including acquisitions, ten-year median: 10.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 8.7%

- FY2018: 9.4%

- FY2019: 9.1%

- FY2020: 10.7%

- FY2021: 10.1%

- FY2022: 10.6%

- FY2023: 12.6%

- FY2024: 12.8%

- FY2025: 13.2%

- LTM to Jun 2026: 14.0%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.91×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: TWD 697B

- Net income, five-year total: TWD 765B

- Return on incremental invested capital: 8.2%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -1.4 pp

- Working capital / revenue, final three-year average: 12.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.96×

- FY2022: 0.97×

- FY2023: 0.75×

- FY2024: 0.90×

- FY2025: 0.96×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 9.4% vs 12.8%

- Per-share earnings: 10.50 to 10.65 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.1%

- Ordinary dilution, 5-year annual growth: 0.0%

- Market cap gain: TWD 2.07T

- Cumulative retained earnings: TWD 613B

- Diluted shares, 10-year annual growth: 0.1%

- Diluted shares, 5-year annual growth: 0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 0.2%

- Per-share value change: TWD 0.15

- Per-share value, starting three-year median: TWD 10.50

- Per-share value, ending three-year median: TWD 10.65

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 2.0%

- Buyback history: 2 years

- Debt-funded buybacks: Yes

- Acquisition spending: TWD 58B

- Cumulative net income, 10 years: TWD 1.40T

- ROIC, first three-year median: 9.4%

- ROIC, last three-year median: 12.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: TWD 10.56

- FY2017: TWD 9.80

- FY2018: TWD 9.09

- FY2019: TWD 8.20

- FY2020: TWD 7.23

- FY2021: TWD 9.79

- FY2022: TWD 10.17

- FY2023: TWD 10.01

- FY2024: TWD 10.65

- FY2025: TWD 13.42

### accounting: pass

- Sloan accruals: -1.2%

- Receivables to sales index (DSRI): 0.87×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 1.1%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.32×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.02×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -1.0%

- FY2017: 5.2%

- FY2018: 5.0%

- FY2019: -4.0%

- FY2020: -7.5%

- FY2021: 6.1%

- FY2022: 0.8%

- FY2023: -7.7%

- FY2024: -0.3%

- FY2025: -1.2%

## Holders

## Price story

Price needs cash profits to shrink 1.1% a year for ten years · "Nvidia Partner Hon Hai’s July Sales Growth Weakened by Tariffs" (finance.yahoo.com, Aug 2025) · sales +14.9%

Story as of 2026-10-16T09:59:57.132Z; price observation 2026-10-15.

Price needs cash profits to shrink 1.1% a year for ten years

- 2025-08-14: Nvidia Partner Hon Hai’s Profit Climbs After AI Spending Rises ([finance.yahoo.com](https://finance.yahoo.com/news/nvidia-partner-hon-hai-profit-062355624.html))

- 2025-10-05: Nvidia Partner Hon Hai Meets Sales Estimates on Strong AI Demand ([finance.yahoo.com](https://finance.yahoo.com/news/nvidia-partner-hon-hai-meets-075225125.html))

- 2026-02-05: Nvidia Partner Hon Hai’s Sales Soar in Sign of Strong AI Demand ([finance.yahoo.com](https://finance.yahoo.com/news/nvidia-partner-hon-hai-sales-073922161.html))

- 2026-03-16: Hon Hai Misses Profit Estimates but Signals Strong 2026 AI Server Growth ([finance.yahoo.com](https://finance.yahoo.com/news/hon-hai-misses-profit-estimates-183625030.html))

- 2026-04-06: Hon Hai Sales Rise 29.7% as AI Demand Holds Amid Geopolitical Risks ([finance.yahoo.com](https://finance.yahoo.com/sectors/technology/articles/hon-hai-sales-rise-29-210404376.html))

- 2026-05-14: Hon Hai Profit Jumps 19% As AI Server Demand Accelerates ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/hon-hai-profit-jumps-19-161746783.html))

### Sales · FY2025–2026

sales +14.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: TWD 4.71T 

- FY2018: TWD 5.29T 

- FY2019: TWD 5.34T 

- FY2020: TWD 5.36T 

- FY2021: TWD 5.99T 

- FY2022: TWD 6.63T 

- FY2023: TWD 6.16T 

- FY2024: TWD 6.86T 

- FY2025: TWD 8.10T 

- FY2026: TWD 9.31T 

### Gross margin · FY2026

gross margin 6.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 6.4% 

- FY2018: 6.3% 

- FY2019: 5.9% 

- FY2020: 5.7% 

- FY2021: 6.0% 

- FY2022: 6.0% 

- FY2023: 6.3% 

- FY2024: 6.3% 

- FY2025: 6.1% 

- FY2026: 6.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in electronic components; annual sales are TWD 8.1 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:40.501Z); FY2025: revenue 8103104763000; grossProfit 498161036000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 2317.TW: Hon Hai Precision Industry Co., Ltd. provides electronic manufacturing services. The company offers consumer electronics, including smartphones, feature phones, wearable devices, televisions, game consoles, set-top boxes, and audio systems; cloud and networking products comprising routers, servers, edge computing, data centers, and satellite communications and other related equipment; electronic computing equipment, such as desktop computers, laptops, tablets, multi-function devices and printers; and connectors, precision optical components, lenses, electronic components, semiconductor products, and automotive electronic parts. It operates in the United States, Singapore, Ireland, Mainland China, Japan, India, Taiwan, Vietnam, Mexico, and internationally. The company was founded in 1974 and is headquartered in New Taipei City, Taiwan.

### Why customers stay

Margins ranged from 6.1% to 6.3% during 2023–25; it earns 10.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:40.501Z); FY2023: grossProfit / revenue = 6.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:40.501Z); FY2024: grossProfit / revenue = 6.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:40.501Z); FY2025: grossProfit / revenue = 6.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:40.501Z); 10-year return on capital observations [[2017,0.08655033456933964],[2018,0.09401168357518333],[2019,0.09075729067295878],[2020,0.10687499544402741],[2021,0.10136803615775435],[2022,0.10585794877308526],[2023,0.12580949872927297],[2024,0.12811239245556233],[2025,0.13178609817175374],[2026,0.14005961274524098]]; median 0.10636647210855633. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 6% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:40.501Z); Gross margin observations: [[2021,0.060413170042904],[2022,0.060372016630308445],[2023,0.062955782728155]]; range within 2 percentage points.

### Where the cash goes

Spends 42% of cash earnings on expansion; earns 8.2% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:40.501Z); FY2016: growth capex 0; upkeep 53204353000; owner earnings 158745408000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:40.501Z); FY2017: growth capex 0; upkeep 60384846000; owner earnings 139349965000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:40.501Z); FY2018: growth capex 5606955000; upkeep 59925857000; owner earnings 129065105000. Growth capex / owner earnings = 0.04344284227715927.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:40.501Z); FY2019: growth capex 3147348582.8365936; upkeep 74864846417.1634; owner earnings 101851470382.8366. Growth capex / owner earnings = 0.030901356367330032.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:40.501Z); FY2020: growth capex 938413428.0852432; upkeep 66597945571.91476; owner earnings 94420793028.08524. Growth capex / owner earnings = 0.00993863107892045.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:40.501Z); FY2021: growth capex 19017815000; upkeep 75481159000; owner earnings 134204115000. Growth capex / owner earnings = 0.14170813614768818.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:40.501Z); FY2022: growth capex 25199442000; upkeep 76460308000; owner earnings 136651226912.14496. Growth capex / owner earnings = 0.18440699413698702.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:40.501Z); FY2023: growth capex 0; upkeep 118950570000; owner earnings 106263174995.45624. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:40.501Z); FY2024: growth capex 46332708251.72127; upkeep 97708680748.27873; owner earnings 137814277743.70056. Growth capex / owner earnings = 0.3361967207627667.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:40.501Z); FY2025: growth capex 76605977000; upkeep 97206647000; owner earnings 182315105297.77057. Growth capex / owner earnings = 0.42018447607443954.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:40.501Z); Incremental return on capital 0.0821441390637898, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:40.501Z); Dividend observations: [[2016,62553153000],[2017,77979322000],[2018,34657477000],[2019,55451962000],[2020,58224561000],[2021,55451962000],[2022,72087551000],[2023,73473850000],[2024,83133972000],[2025,80571871000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 12.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 2317.TW SharesStats.PercentInsiders = 12.36 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 1.1% yearly over ten years; actual growth was 2.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:40.501Z); Ten-year compound average after fade. Initial solved rate -0.02856333332881894. Price 239.5; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 10.519841162574734 → FY2025 12.925140590750546. Closing-price date 2026-10-15.

## Monthly share-price history (TWD per share)

- 2016-10: TWD 85.30 per share

- 2016-11: TWD 82.00 per share

- 2016-12: TWD 84.20 per share

- 2017-01: TWD 83.70 per share

- 2017-02: TWD 89.50 per share

- 2017-03: TWD 91.00 per share

- 2017-04: TWD 98.80 per share

- 2017-05: TWD 103.00 per share

- 2017-06: TWD 117.00 per share

- 2017-07: TWD 117.50 per share

- 2017-08: TWD 117.50 per share

- 2017-09: TWD 3.01 per share

- 2017-10: TWD 112.00 per share

- 2017-11: TWD 100.00 per share

- 2017-12: TWD 95.20 per share

- 2018-01: TWD 92.20 per share

- 2018-02: TWD 88.10 per share

- 2018-03: TWD 2.49 per share

- 2018-04: TWD 82.90 per share

- 2018-05: TWD 85.70 per share

- 2018-06: TWD 83.20 per share

- 2018-07: TWD 83.80 per share

- 2018-08: TWD 80.50 per share

- 2018-09: TWD 79.20 per share

- 2018-10: TWD 78.80 per share

- 2018-11: TWD 71.90 per share

- 2018-12: TWD 70.80 per share

- 2019-01: TWD 70.00 per share

- 2019-02: TWD 72.70 per share

- 2019-03: TWD 73.50 per share

- 2019-04: TWD 86.90 per share

- 2019-05: TWD 73.90 per share

- 2019-06: TWD 77.40 per share

- 2019-07: TWD 78.60 per share

- 2019-08: TWD 74.20 per share

- 2019-09: TWD 73.20 per share

- 2019-10: TWD 80.60 per share

- 2019-11: TWD 88.50 per share

- 2019-12: TWD 90.80 per share

- 2020-01: TWD 83.20 per share

- 2020-02: TWD 80.30 per share

- 2020-03: TWD 69.90 per share

- 2020-04: TWD 77.00 per share

- 2020-05: TWD 75.80 per share

- 2020-06: TWD 86.30 per share

- 2020-07: TWD 78.40 per share

- 2020-08: TWD 76.90 per share

- 2020-09: TWD 77.40 per share

- 2020-10: TWD 77.50 per share

- 2020-11: TWD 82.30 per share

- 2020-12: TWD 92.00 per share

- 2021-01: TWD 111.50 per share

- 2021-02: TWD 112.00 per share

- 2021-03: TWD 124.00 per share

- 2021-04: TWD 116.00 per share

- 2021-05: TWD 113.50 per share

- 2021-06: TWD 112.00 per share

- 2021-07: TWD 110.00 per share

- 2021-08: TWD 111.00 per share

- 2021-09: TWD 105.00 per share

- 2021-10: TWD 107.00 per share

- 2021-11: TWD 103.50 per share

- 2021-12: TWD 104.00 per share

- 2022-01: TWD 102.00 per share

- 2022-02: TWD 103.00 per share

- 2022-03: TWD 106.00 per share

- 2022-04: TWD 102.00 per share

- 2022-05: TWD 113.00 per share

- 2022-06: TWD 109.00 per share

- 2022-07: TWD 109.00 per share

- 2022-08: TWD 109.00 per share

- 2022-09: TWD 102.00 per share

- 2022-10: TWD 102.50 per share

- 2022-11: TWD 100.50 per share

- 2022-12: TWD 99.90 per share

- 2023-01: TWD 99.70 per share

- 2023-02: TWD 101.00 per share

- 2023-03: TWD 104.00 per share

- 2023-04: TWD 104.50 per share

- 2023-05: TWD 106.50 per share

- 2023-06: TWD 113.00 per share

- 2023-07: TWD 108.50 per share

- 2023-08: TWD 106.50 per share

- 2023-09: TWD 104.00 per share

- 2023-10: TWD 96.50 per share

- 2023-11: TWD 101.50 per share

- 2023-12: TWD 104.50 per share

- 2024-01: TWD 102.50 per share

- 2024-02: TWD 103.00 per share

- 2024-03: TWD 151.50 per share

- 2024-04: TWD 156.00 per share

- 2024-05: TWD 172.00 per share

- 2024-06: TWD 214.00 per share

- 2024-07: TWD 198.00 per share

- 2024-08: TWD 184.50 per share

- 2024-09: TWD 187.50 per share

- 2024-10: TWD 211.50 per share

- 2024-11: TWD 195.50 per share

- 2024-12: TWD 184.00 per share

- 2025-01: TWD 180.00 per share

- 2025-02: TWD 174.00 per share

- 2025-03: TWD 146.00 per share

- 2025-04: TWD 141.50 per share

- 2025-05: TWD 156.00 per share

- 2025-06: TWD 161.00 per share

- 2025-07: TWD 178.00 per share

- 2025-08: TWD 203.50 per share

- 2025-09: TWD 216.00 per share

- 2025-10: TWD 257.50 per share

- 2025-11: TWD 225.50 per share

- 2025-12: TWD 230.50 per share

- 2026-01: TWD 220.50 per share

- 2026-02: TWD 243.00 per share

- 2026-03: TWD 187.50 per share

- 2026-04: TWD 219.50 per share

- 2026-05: TWD 289.00 per share

- 2026-06: TWD 251.00 per share

- 2026-07: TWD 250.50 per share

- 2026-08: TWD 250.00 per share

- 2026-09: TWD 251.50 per share

- 2026-10: TWD 240.00 per share

## Annual estimated value (TWD per share)

- FY2016: low TWD 185.44 per share, central TWD 244.62 per share, high TWD 279.08 per share

- FY2017: low TWD 169.79 per share, central TWD 188.79 per share, high TWD 211.54 per share

- FY2018: low TWD 208.12 per share, central TWD 257.61 per share, high TWD 292.30 per share

- FY2019: low TWD 183.44 per share, central TWD 204.84 per share, high TWD 228.89 per share

- FY2020: low TWD 188.46 per share, central TWD 208.15 per share, high TWD 228.68 per share

- FY2021: low TWD 185.93 per share, central TWD 220.03 per share, high TWD 245.49 per share

- FY2022: low TWD 182.27 per share, central TWD 212.73 per share, high TWD 237.62 per share

- FY2023: low TWD 169.83 per share, central TWD 182.30 per share, high TWD 198.91 per share

- FY2024: low TWD 178.21 per share, central TWD 192.70 per share, high TWD 211.98 per share

- FY2025: low TWD 226.62 per share, central TWD 255.13 per share, high TWD 282.46 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:26.113Z where newer inputs omit a numeric field or fiscal period.

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.