Hon Hai fell below NTD1tn market value; its share price hit a new low
The sales of Apple’s(AAPL-US) iPhone XS and iPhone XR are below expectation ; cancellation of related orders continues. It is said that Hon Hai (2317-TW), a leading OEM, has sent thousands of workers to leave the factory. Hon Hai has not yet responded to this situation. However, due to the news of iPhone XR’s orders cancellation, Hon Hai's share price fell 3.27% today and closed at NTD71, hitting a new low after the capital reduction. Its market value fell below trillion as well, hitting a five-year low.
According to foreign media reports, the shipment of Apple’s iPhone XS, iPhone XS Max and iPhone XR were under expectations and related orders dropped. Overtime hours in Hon Hai declined accordingly, leading thousands of workers to leave voluntarily because the overtime pays are their main source of income.
Hon Hai has not yet responded to the situation. According to the past experience, the flow of personnel can be seen as normal. However, due to the bad news that Apple has cancelled one-third of the orders of iPhone XR, Hon Hai’s share price dropped to NTD71, a low point after the capital reduction. Hon Hai’s trading volume is 40955000 shares today, the second largest amount after TSMC(2330-TW).
Based on Hon Hai’s paid-in capital of NTD138.63 billion, Hon Hai's closing market value is NTD984.27bn, fell below the trillion level. It is also the first time that its market value dropped below trillion since 2013. The company's share price has dropped by 14% after capital reduction. At that time, share price was NTD82.6.