# Foxconn Industrial Internet (601138.SHG)

Canonical: https://gigainvestors.com/s/601138.SHG

Analysis as of: 2026-10-16T07:33:36.333Z. Financial observations: FY2015–FY2025.

Listing currency: CNY. Reporting currency: CNY.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CNY 46.90 per share; close as of 2026-10-15.

Estimated value: low CNY 27.18 per share, central CNY 32.81 per share, high CNY 37.65 per share. Buy at or below the central value CNY 32.81 per share. Valuation as of 2026-10-16T07:33:36.333Z; scenarios are not confidence intervals.

Expected annual return: 7.7% at the stated quote. About 7.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CN 10-year bond 1.7% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.12×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.06×

- FY2017: 0.06×

- FY2018: 0.05×

- FY2019: 0.05×

- FY2020: 0.05×

- FY2021: 0.05×

- FY2022: 0.04×

- FY2023: 0.05×

- FY2024: 0.04×

- FY2025: 0.05×

### moat: pass

- ROIC, median of available years: 21.5%

- ROIC, second-lowest year: 18.6%

- Typical minus recent gross margin: 1.2 pp

- Typical gross margin (annual median): 8.1%

- Recent gross margin (lower of latest and 3-year median): 6.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.3%

- ROIC including acquisitions, ten-year median: 18.3%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 18.6%

- FY2017: 79.6%

- FY2018: 51.8%

- FY2019: 36.5%

- FY2020: 24.8%

- FY2021: 21.2%

- FY2022: 16.7%

- FY2023: 19.7%

- FY2024: 18.6%

- FY2025: 21.9%

### economics: pass

- Owner earnings / net income, 5-yr: 0.86×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CNY 103B

- Net income, five-year total: CNY 120B

- Return on incremental invested capital: 13.3%

- Working capital / revenue, annual change: 0.7 pp

- Working capital / revenue, change between three-year averages: 4.9 pp

- Working capital / revenue, final three-year average: 17.6%

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

- FY2021: 0.82×

- FY2022: 0.83×

- FY2023: 0.77×

- FY2024: 0.85×

- FY2025: 0.98×

### management: pass

- Historical market-dollar context (not the management verdict): 2018 to 2025 (7 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 51.8% vs 19.7%

- Per-share earnings: 0.86 to 1.17 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 1.7%

- Ordinary dilution, 5-year annual growth: -0.1%

- Market cap gain: CNY 995B

- Cumulative retained earnings: CNY 84B

- Diluted shares, 10-year annual growth: 1.7%

- Diluted shares, 5-year annual growth: -0.1%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 4.0%

- Per-share value change: CNY 0.31

- Per-share value, starting three-year median: CNY 0.86

- Per-share value, ending three-year median: CNY 1.17

- Buybacks concentrated in cheaper years (correlation): 0.03

- Average buyback yield: 0.2%

- Buyback history: 6 years

- Debt-funded buybacks: Yes

- Acquisition spending: CNY 1.4B

- Cumulative net income, 10 years: CNY 203B

- ROIC, first three-year median: 51.8%

- ROIC, last three-year median: 19.7%

Chart: Earnings per share; fiscal year observations.

- FY2016: CNY 0.86

- FY2017: CNY 0.90

- FY2018: CNY 0.86

- FY2019: CNY 0.95

- FY2020: CNY 0.88

- FY2021: CNY 0.98

- FY2022: CNY 1.02

- FY2023: CNY 1.06

- FY2024: CNY 1.17

- FY2025: CNY 1.79

### accounting: pass

- Sloan accruals: 6.5%

- Receivables to sales index (DSRI): 0.85×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 8.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.15×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.01×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.9%

- FY2017: 4.9%

- FY2018: -2.5%

- FY2019: 5.9%

- FY2020: 4.3%

- FY2021: 4.2%

- FY2022: 1.7%

- FY2023: -7.7%

- FY2024: -0.2%

- FY2025: 6.5%

## Holders

## Price story

Down 36% since May 2026 · "Foxconn Profit Drops 2% -- Apple and Nvidia Supplier Warns of Cost Risks" (finance.yahoo.com, Mar 2026) · sales +48.2%

Story as of 2026-10-16T09:59:56.885Z; price observation 2026-10-15.

Price needs cash profits to grow 8.4% a year for ten years

- 2025-07-05: Apple, Nvidia supplier Foxconn reports record Q2 revenue on AI demand ([investing.com](https://www.investing.com/news/earnings/apple-nvidia-supplier-foxconn-reports-record-q2-revenue-on-ai-demand-4123623))

- 2025-08-14: Foxconn Profit Beats on Solid AI Hardware Sales ([finance.yahoo.com](https://finance.yahoo.com/m/871859ec-3d49-3806-b03f-655c1af8abbb/foxconn-profit-beats-on-solid.html))

- 2026-03-16: Foxconn Profit Drops 2% -- Apple and Nvidia Supplier Warns of Cost Risks ([finance.yahoo.com](https://finance.yahoo.com/news/foxconn-profit-drops-2-apple-131508134.html))

### Sales · FY2024–2025

sales +48.2%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CNY 273B 

- FY2017: CNY 355B 

- FY2018: CNY 415B 

- FY2019: CNY 409B 

- FY2020: CNY 432B 

- FY2021: CNY 440B 

- FY2022: CNY 512B 

- FY2023: CNY 476B 

- FY2024: CNY 609B 

- FY2025: CNY 902B 

### Gross margin · FY2025

gross margin 6.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 10.5% 

- FY2017: 10.0% 

- FY2018: 8.3% 

- FY2019: 8.2% 

- FY2020: 8.0% 

- FY2021: 8.1% 

- FY2022: 7.0% 

- FY2023: 7.9% 

- FY2024: 7.1% 

- FY2025: 6.8% 

## Owner memo

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

### How it makes money

Operates in communication equipment; annual sales are CNY 902.5 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.333Z); FY2025: revenue 902454649000; grossProfit 61457704000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601138.SHG: Foxconn Industrial Internet Co., Ltd., together with its subsidiaries, provides smart manufacturing and industrial internet services in Mexico, Vietnam, Singapore, Mainland China, and internationally. The company offers communication and mobile network equipment products comprising 5G/4G modules, 5G terminals, 5G private network, and Wi-Fi equipment; cloud computing products consisting of high-performance servers, edge computing, advanced heat dissipation, and storage equipment; industrial internet services, such as lighthouse, manufacturing consulting, and cloud and platform services, as well as hardware and software integration products; and precision manufacturing automation solutions for the automation, robot, optical inspection, and MedTech industries. It also engages in the provision of precision tools; communication network high-precision components; network devices; industrial robots; construction machinery and equipment; mining equipment; teaching equipment; information systems; smart wearable devices; automation and molds; automation equipment; electronic components; medical devices and mechanical equipment; and motherboards and computers. In addition, the company is involved in cloud computing, trading, management, IT, software development, Internet information, management and technical consulting, technology and hardware research and development, technical services, logistics, 5G laboratory, electronic manufacturing, financial planning, and investment consulting services. Foxconn Industrial Internet Co., Ltd. was incorporated in 2015 and is based in Shenzhen, China.

### Why customers stay

Margins ranged from 6.8% to 7.9% during 2023–25; it earns 21.5% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.333Z); FY2023: grossProfit / revenue = 7.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.333Z); FY2024: grossProfit / revenue = 7.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.333Z); FY2025: grossProfit / revenue = 6.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.333Z); 10-year return on capital observations [[2016,0.1859512500764801],[2017,0.7960036829543935],[2018,0.5178001213866331],[2019,0.36537982439195804],[2020,0.247881525338465],[2021,0.21185100300351667],[2022,0.16659140242736215],[2023,0.196634209531914],[2024,0.18636755571355546],[2025,0.21883635882629512]]; median 0.2153436809149059. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 7% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.333Z); Gross margin observations: [[2021,0.08119359074534088],[2022,0.07010983201375262],[2023,0.07903502864183552]]; range within 2 percentage points.

### Where the cash goes

Spends 25.8% of cash earnings on expansion; earns 13.3% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.333Z); FY2016: growth capex 0; upkeep 3176299000; owner earnings 14573533000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.333Z); FY2017: growth capex 0; upkeep 935661000; owner earnings 18617967000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.333Z); FY2018: growth capex 0; upkeep 3680488000; owner earnings 17089738000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.333Z); FY2019: growth capex 0; upkeep 3058426000; owner earnings 18293798000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.333Z); FY2020: growth capex 581879500.974493; upkeep 3024401499.025507; owner earnings 16839336500.974493. Growth capex / owner earnings = 0.034554776011561955.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.333Z); FY2021: growth capex 174072119.23177147; upkeep 5861242880.768229; owner earnings 16426747919.231771. Growth capex / owner earnings = 0.01059687042667617.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.333Z); FY2022: growth capex 1749969687.1815605; upkeep 6343320312.8184395; owner earnings 16736145087.18156. Growth capex / owner earnings = 0.1045622918578715.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.333Z); FY2023: growth capex 0; upkeep 9189698000; owner earnings 16097900600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.333Z); FY2024: growth capex 4678212730.79443; upkeep 6602670269.20557; owner earnings 19783290930.79443. Growth capex / owner earnings = 0.23647292794508626.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.333Z); FY2025: growth capex 8869736000; upkeep 8360226000; owner earnings 34405057800. Growth capex / owner earnings = 0.2578032582174589.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.333Z); Incremental return on capital 0.1332768654583203, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.333Z); Dividend observations: [[2016,368081000],[2017,1957911000],[2018,698297000],[2019,2559938000],[2020,3974421000],[2021,4966790000],[2022,9890945000],[2023,13267414000],[2024,13831861000],[2025,19254439000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.333Z); FY2025: cash repurchases 354671000 CNY.

### Are managers owners

Insiders own 83.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 601138.SHG SharesStats.PercentInsiders = 83.80199999999999 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 8.4% yearly over ten years; actual growth was 6.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:33:36.333Z); Ten-year compound average after fade. Initial solved rate 0.139885434652739. Price 46.9; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.9082303367855844 → FY2025 1.7472965855378326. Closing-price date 2026-10-15.

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

- 2018-06: CNY 18.44 per share

- 2018-07: CNY 17.17 per share

- 2018-08: CNY 14.79 per share

- 2018-09: CNY 14.24 per share

- 2018-10: CNY 12.25 per share

- 2018-11: CNY 11.53 per share

- 2018-12: CNY 11.59 per share

- 2019-01: CNY 11.50 per share

- 2019-02: CNY 15.09 per share

- 2019-03: CNY 14.75 per share

- 2019-04: CNY 15.42 per share

- 2019-05: CNY 13.68 per share

- 2019-06: CNY 12.05 per share

- 2019-07: CNY 13.67 per share

- 2019-08: CNY 14.21 per share

- 2019-09: CNY 14.40 per share

- 2019-10: CNY 15.35 per share

- 2019-11: CNY 16.66 per share

- 2019-12: CNY 18.27 per share

- 2020-01: CNY 20.00 per share

- 2020-02: CNY 17.08 per share

- 2020-03: CNY 13.21 per share

- 2020-04: CNY 14.69 per share

- 2020-05: CNY 13.41 per share

- 2020-06: CNY 15.15 per share

- 2020-07: CNY 14.59 per share

- 2020-08: CNY 14.74 per share

- 2020-09: CNY 13.59 per share

- 2020-10: CNY 13.65 per share

- 2020-11: CNY 13.81 per share

- 2020-12: CNY 13.69 per share

- 2021-01: CNY 14.29 per share

- 2021-02: CNY 13.81 per share

- 2021-03: CNY 14.37 per share

- 2021-04: CNY 13.76 per share

- 2021-05: CNY 12.42 per share

- 2021-06: CNY 12.41 per share

- 2021-07: CNY 11.22 per share

- 2021-08: CNY 11.48 per share

- 2021-09: CNY 11.62 per share

- 2021-10: CNY 11.35 per share

- 2021-11: CNY 11.17 per share

- 2021-12: CNY 11.92 per share

- 2022-01: CNY 11.11 per share

- 2022-02: CNY 11.17 per share

- 2022-03: CNY 10.15 per share

- 2022-04: CNY 9.52 per share

- 2022-05: CNY 9.41 per share

- 2022-06: CNY 9.84 per share

- 2022-07: CNY 10.05 per share

- 2022-08: CNY 9.29 per share

- 2022-09: CNY 8.52 per share

- 2022-10: CNY 8.20 per share

- 2022-11: CNY 9.15 per share

- 2022-12: CNY 9.18 per share

- 2023-01: CNY 9.51 per share

- 2023-02: CNY 9.60 per share

- 2023-03: CNY 17.22 per share

- 2023-04: CNY 16.12 per share

- 2023-05: CNY 18.05 per share

- 2023-06: CNY 25.20 per share

- 2023-07: CNY 22.33 per share

- 2023-08: CNY 21.91 per share

- 2023-09: CNY 19.70 per share

- 2023-10: CNY 14.72 per share

- 2023-11: CNY 15.10 per share

- 2023-12: CNY 15.12 per share

- 2024-01: CNY 13.31 per share

- 2024-02: CNY 18.69 per share

- 2024-03: CNY 22.77 per share

- 2024-04: CNY 24.50 per share

- 2024-05: CNY 22.91 per share

- 2024-06: CNY 27.40 per share

- 2024-07: CNY 23.84 per share

- 2024-08: CNY 20.47 per share

- 2024-09: CNY 25.19 per share

- 2024-10: CNY 24.25 per share

- 2024-11: CNY 22.19 per share

- 2024-12: CNY 21.50 per share

- 2025-01: CNY 21.45 per share

- 2025-02: CNY 21.19 per share

- 2025-03: CNY 19.86 per share

- 2025-04: CNY 18.06 per share

- 2025-05: CNY 18.93 per share

- 2025-06: CNY 21.38 per share

- 2025-07: CNY 34.61 per share

- 2025-08: CNY 53.83 per share

- 2025-09: CNY 66.01 per share

- 2025-10: CNY 72.00 per share

- 2025-11: CNY 60.72 per share

- 2025-12: CNY 62.05 per share

- 2026-01: CNY 57.70 per share

- 2026-02: CNY 55.70 per share

- 2026-03: CNY 51.46 per share

- 2026-04: CNY 62.88 per share

- 2026-05: CNY 73.40 per share

- 2026-06: CNY 72.15 per share

- 2026-07: CNY 56.70 per share

- 2026-08: CNY 64.84 per share

- 2026-09: CNY 58.20 per share

- 2026-10: CNY 52.29 per share

## Annual estimated value (CNY per share)

- FY2019: low CNY 13.55 per share, central CNY 15.00 per share, high CNY 16.94 per share

- FY2020: low CNY 14.17 per share, central CNY 15.64 per share, high CNY 17.59 per share

- FY2021: low CNY 13.35 per share, central CNY 14.69 per share, high CNY 16.48 per share

- FY2022: low CNY 14.09 per share, central CNY 15.62 per share, high CNY 17.66 per share

- FY2023: low CNY 13.53 per share, central CNY 14.88 per share, high CNY 16.68 per share

- FY2024: low CNY 14.44 per share, central CNY 16.01 per share, high CNY 18.10 per share

- FY2025: low CNY 23.88 per share, central CNY 28.54 per share, high CNY 32.54 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

## 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.