Market Insight | Hon Hai Precision Industry rebounds by over 10%, Hon Hai's July revenue exceeds expectations, NVIDIA's delayed shipments have a short-term impact on Hon Hai's stock price

HonTeng Precision rebounded more than 10% in the morning session. As of the time of publication, it rose by 5.99% to HKD 2.3, with a turnover of HKD 331.425 million. On the news front, Hon Hai Technology Group, the parent company of Foxconn, announced a July sales revenue of NTD 572.35 billion, a year-on-year increase of 22% and a month-on-month increase of 16.63%. Goldman Sachs stated that Hon Hai's July revenue exceeded the institution's expectations, expecting its third-quarter revenue to continue to grow, benefiting from a positive outlook in the second half of the year, the improvement of AI servers, and the launch of new consumer electronic products. The revenue estimate for 2024 has been raised by 1% to reflect higher-than-expected cloud computing revenue in the third quarter; at the same time, the gross profit margin has been lowered due to the dilution of the profit margin of the new AI server project. In addition, due to design flaws, the shipment of NVIDIA's next-generation Blackwell architecture series AI flagship chip GB200 will be delayed by at least three months. Morgan Stanley pointed out that as a major contract manufacturer, Hon Hai may be affected by short-term stock price fluctuations. CICC previously stated that from an industry perspective, the demand for copper cable connections driven by the GTC2024 NVIDIA's release of the GB200 NVL72 cabinet continues to increase, driving the overall market size expansion in the industry