Hong Kong Stock Concept Tracking|Foxconn expects net profit growth of 72% in the first quarter to benefit the supporting industry chain (with concept stocks)

The Zhitong Finance App learned that Foxconn, the world's largest electronics OEM, announced on Monday that the company's April revenue increased 25.54% year-on-year.

Foxconn said that compared with the same period last year, the second-quarter results are expected to increase, but the company also added that “we need to continue to pay close attention to the impact of changing global political and economic conditions.”

Thanks to continued strong demand for artificial intelligence servers, Foxconn is expected to report a 72% increase in first-quarter net profit on Wednesday.

The company said its first-quarter revenue grew 24.2%, the highest in a single quarter, due to strong sales of artificial intelligence servers.

According to industry sources, Foxconn, the world's largest electronics agency, plans to manufacture 25 million to 30 million Apple iPhones at its Indian factory in 2025. This figure will account for about 10-15% of Apple's total annual iPhone production, an increase of more than 100% over 2023, marking significant progress in Apple's supply chain diversification strategy.

According to the analysis, this data means that Foxconn's iPhone production in India increased 100%-150% year over year, and the Chennai plant already has the capacity to mass-produce high-end Pro series models.

According to reports, Foxconn Chairman Liu Yangwei predicts that the company's server business revenue will surpass iPhone business revenue within two years. The Zhitong Finance App learned that Liu Yangwei attended Nvidia's annual GTC developer conference. When asked on the sidelines of the conference whether Foxconn's server revenue could surpass iPhone revenue, he said “definitely within two years,” and this is likely to happen as soon as this year.

Hong Kong stocks related to Foxconn's industrial chain:

Fuzhikang Group (02038): In the first quarter of 2025, the group achieved operating income and other operating income of about US$1,017 million, an increase of 1.91% over the previous year; profit for the period was US$1.072 million, turning a year-on-year loss into a profit.

Hongteng Precision (06088): Hongteng Precision previously announced first-quarter results. The company achieved revenue of US$1.03 billion, up 14% year on year; net profit of US$6.24 million; down 38% year on year; and reduced revenue growth guidelines for smartphone/system terminal products for the full year 25. Driven by the AI server market and platform renewal demand, the network infrastructure business segment recorded rapid growth in revenue. The company expects network infrastructure business revenue to maintain double-digit growth (> 15%) in 25Q2.