1、Hon HaiDeep Dive:Primary AI server vendor for NVDA;transitioning away from iPhonesTechnologyGokul Hariharan AC(852)2800-Bloomberg JPMA HARIHARAN J.P.Morgan Securities(Asia Pacific)Limited/J.P.Morgan Broking(Hong Kong)LimitedAsia Pacific Equity ResearchMarch 2025See the end pages of this presentation

2、 for analyst certification and important disclosures,including non-US analyst disclosures.J.P.Morgan does and seeks to do business with companies covered in its research reports.As a result,investors should be aware that the firm may have a conflict of interest that could affect the objectivity of t

3、his report.Investors should consider this report as only a single factor in making their investment decision.20182019202020212022202320242025E2026E100%90%80%70%60%50%40%30%20%10%0%53%50%48%55%53%54%46%39%35%23%24%25%21%23%22%30%42%47%18%21%21%18%18%17%18%14%12%6%6%6%6%5%6%6%6%5%Consumer and Smart Pr

4、oductsEnterprise ProductsComputing ProductsComponents and OthersHon Hai Company BackgroundBackground Founded in 1974,Hon Hai is the worlds largest electronics manufacturerHon Hai generated NT$6.9tn(US$214bn)revenue and NT$153bn(US$4.8bn)earnings in 2024Current market cap:US$69bn;3M avg.daily volume:

5、US$270mn;QFII holdings:37%Business overview and revenue breakdownSuccessfully executing revenue diversification,Consumer/Cloud revenue mix at 54%/22%in 2023 changed to 46%/30%in 2024,can go to 40%in 2025-26E,driven by strong position in NVDAs supply chain for GPU and AI server assemblyKey beneficiar

6、y of GB200/GB300(Blackwell)ramp in 2025,leadership position at 45-50%share in rack assembly.AI server revenue exposure rising from 5%/12%in 2023/24 to 26%in 2025.Sustainable competitive advantage in next gen productsApple exposure reducing from mid-50%in 2022-23 to 55k patentsPositionNameEducation a