Message Font: Serif | Sans-Serif
No. of Recommendations: 0
The Titan From Tucheng

Move over, Flextronics. For years, the Singapore giant claimed the top spot among the contract manufacturers that churn out laptops, printers, cameras, and all manner of electronic gadgets for the likes of Hewlett-Packard (HPQ ), Apple (AAPL ), and Dell (DELL ). But a new champion is sweeping past Flextronics International Ltd. (FLEX ) to claim the world title of No. 1: Hon Hai Precision Industry Co., a low-profile Taiwanese company based in the gritty Taipei suburb of Tucheng.

In the cutthroat world of Taiwan's electronics makers, Hon Hai is a rarity: It's a profit machine. Most Taiwanese companies these days enjoy healthy sales growth but suffer from anemic earnings, because of relentless pressure from customers to cut prices. But even as Taiwanese blue chips such as Quanta Computer Inc. and Compal Electronics Inc. have struggled, Hon Hai has thrived. The company ranks No. 2 on this year's BusinessWeek IT 100. That makes it four straight years in the top 10, a performance matched only by fearsome Dell Inc. It booked sales of $16.2 billion last year, up 34%, and profits increased 18%. Although its margins are shrinking, Hon Hai remains well ahead of rivals, and its stock price is up 38% in the past year, compared with a scant 1% rise in the Taiex Taiwanese electronics index. "In Taiwan, there is no comparison with Hon Hai," says Tony Tsai of Taiwan Ratings Corp., a Taipei agency...

I just found this article about "Hon Hai Precision Industry Co." as part of the Business Week Online "Info Tech Top 100" listing. I still like FLEX but I am also interested in other companies that are outt here that may be doing better...

JT :-)
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.