Foxconn Industrial Internet (601138) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached RMB 170.28 billion, up 39.53% year-over-year, and net profit attributable to shareholders was RMB 6.40 billion, up 1.24% year-over-year, both hitting historical highs.

• For the first nine months, revenue was RMB 436.37 billion, up 32.71% year-over-year, and net profit attributable to shareholders was RMB 15.14 billion, up 12.28% year-over-year.

• Excluding forex impact, net profit attributable to shareholders grew 11% year-over-year in Q3.

Financial highlights

• Q3 basic and diluted EPS were RMB 0.32; for the first nine months, both were RMB 0.76, up 11.76% year-over-year.

• Operating cash flow for the first nine months was RMB 4.15 billion, down 87.08% year-over-year due to increased cash outflows for purchases.

• Total assets at Q3-end were RMB 308.44 billion, up 7.21% from year-end 2023.

• Shareholders’ equity attributable to listed company shareholders was RMB 143.55 billion, up 2.40% from year-end 2023.

Outlook and guidance

• AI server demand remains robust, with AI server revenue up 228% year-over-year in the first nine months and its share of total server revenue rising to 48% in Q3.

• General server shipments continue to recover, with revenue up 22% year-over-year for the first nine months.

• Cloud service provider revenue up 76% year-over-year for the first nine months, accounting for 46% of total revenue.