FIH Mobile, the contract electornics manufacturer that assembles Xiaomi’s smartphones, is anticipated to report a turnaround in its second-half earnings, as increasing sales helped it rebound from a loss in the first six months of the year.
“We forecast strong revenue growth of 48 per cent year-on-year for the second half of 2017, driven by a ramp-up in shipments from Nokia and increasing orders from India,” Daiwa Capital Markets analyst Kylie Huang said on Tuesday.
Huang also forecast FIH Mobile, a subsidiary of Taiwan-based Hon Hai Precision Industry, to record a net profit of US$94 million in the six months ended December 30, aided by a US$10 million gain from the disposal of some of its interest in smartphone photo editing app provider Meitu.
It would mark a quick recovery for FIH Mobile after it reported on Friday a US$196.5 million interim net loss, compared with a US$20.8 million net profit in the same period last year.
That loss had spoiled the company’s 89.6 per cent increase in interim revenue to US$4.4 billion, up from US$2.3 billion a year earlier.
FIH Mobile’s interim net loss was attributed to costs related to its deal with Finnish company HMD Global to buy Nokia’s mobile phone business from Microsoft Corp for US$350 million to develop a new Android smartphone business.