Hon Hai (2317)

Equity Research 7 September 2026 | 3:58AM HKT

Hon Hai (2317.TW): Aug revenues +52% YoY; Improving visibility in 3Q on AI server ramp up and smartphones spec upgrade; Buy (on CL)

Hon Hai’s Aug revenues were +52% YoY/ -3% MoM to NT$922bn, or 12% lower than Allen Chang | our previous estimates, and we attribute it to demand pull-in last month. From a Goldman Sachs (Asia) L.L.C. MoM perspective, Cloud and Networking achieved significant growth MoM on Verena Jeng pull-in of AI products, while Consumer Electronics and Computing segments saw | Goldman Sachs (Asia) L.L.C. MoM declines, and mgmt notes the main consumer electronics products entered a transition period to new products. From a YoY perspective, Computing delivered Ting Song | Goldman Sachs (Asia) L.L.C. significant growth YoY on product momentum and higher shipment prices, followed by Consumer Electronics, Cloud and Networking and Components all achieving strong growth YoY in Aug. Management notes 3Q26 visibility has improved vs. previous, supported by strong ramp up of AI server racks and Consumer electronics enters the peak season.

We expect continued growth in the AI server business with market share gain opportunities, along with the upcoming smartphone form factor changes in 2026E to drive Hon Hai’s growth ahead. Maintain Buy (on CL).

Exhibit 1: Hon Hai’s Aug revenues +52% YoY, or -3% MoM

-40% Jan-11 Aug-11 Mar-12 Oct-12 May-13 Dec-13 Jul-14 Feb-15 Sep-15 Apr-16 Nov-16 Jun-17 Jan-18 Aug-18 Mar-19 Oct-19 May-20 Dec-20 Jul-21 Feb-22 Sep-22 Apr-23 Nov-23 Jun-24 Jan-25 Aug-25 Mar-26

3-month revenues preview: We expect company’s 3Q26E revenues to be +47% YoY/ +20% QoQ to NT$3.1 trillion. Both Jul and Aug delivered strong revenues YoY growth (+54%/ 52% YoY), and we expect to see both YoY and MoM growth in Sep to NT$1.15bn, supported by AI server rack gradual shipment and new products roll-out of consumer electronics products.

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Goldman Sachs Hon Hai (2317.TW)

Exhibit 2: We model Hon Hai’s Sep 2026 revenue to be +37% YoY or +25% MoM Hon Hai’s monthly/quarterly revenue May 2026 June 2026 July 2026 Aug 2026 Sep 2026E Oct 2026E Nov 2026E 2Q26 3Q26E Revenues (NT$m) 859,409 821,763 946,513 921,766 1,150,427 1,207,948 1,183,789 2,525,894 3,018,705 YoY 40% 52% 54% 52% 37% 35% 40% 41% 47% MoM/QoQ 3% -4% 15% -3% 25% 5% -2% 19% 20% GS estimates (NT$m) 815,456 695,162 928,592 1,050,629 2,386,670 Actual vs. GS 5% 18% 2% -12% 6%

Source: Company data, Goldman Sachs Global Investment Research

EV business in August 2026: Hon Hai’s EV subsidiary Foxtron (2258.TW, not covered) reported Aug revenues of NT$914mn (vs. Jul-26 / Aug-25 revenues at NT$598mn / NT$111mn). Post the announcement of its proposal to acquire Luxgen in December (report), Foxtron has announced its first self-branded vehicle “Foxtron Bria”. Also, the partnership with Mitsubishi Motors (7211.T, covered by Kota Yuzawa) on passenger cars (read more in our report) and zero emission buses (read more on the company’s announcement) suggests scope for incremental growth opportunities for Foxtron which could be positive for Hon Hai.

Exhibit 3: Foxtron’s (Hon Hai’s EV subsidiary) monthly revenues

Earnings revision: We factor in Hon Hai Aug revenues and revise down our 2026E earnings by 1%, mainly on lower revenues; meanwhile we remain positive on gradual AI server ramp up and smartphones spec upgrade to drive growth ahead. We keep 2027E/ 2028E estimates largely unchanged.

Exhibit 4: Earnings revision 2026E 2027E 2028E NTD m Old New Chg Old New Chg Old New Chg Revenues 11,068,297 11,049,022 -0.2% 14,028,433 14,028,433 0% 18,122,500 18,122,500 0% GP 658,118 655,343 -0.4% 740,692 740,692 0% 820,946 820,946 0% OP 381,329…