HK Stock Market Move | FIH (02038) rose nearly 7% during trading hours, turning losses into profits in the third quarter. It is rumored that Apple plans to partner with Foxconn to produce AI servers.

FIH (02038) surged nearly 7% during trading, rising by 5.75% to HK$0.92 as of the time of writing, with a turnover of HK$12.2884 million. On the news front, FIH previously announced its third-quarter performance, with operating revenue and other operating income totaling $2.26 billion, a year-on-year decrease of 5.3%. The company recorded a profit of $5.432 million, compared to a loss of $20.365 million in the same period last year, achieving a turnaround from loss to profit. The company expects its sales for the fiscal year 2024 to decline year-on-year, mainly due to intense competition and changes in customer outsourcing strategies leading to lower sales. Despite a reduction in operating expenses, low asset utilization remains a major challenge. The company anticipates improvements in financial performance in the second half of the year through measures such as optimizing customer portfolios and cost-cutting. It is worth noting that on November 6th, there were reports that Apple has been in contact with Foxconn to discuss the production of artificial intelligence servers in Taiwan, according to sources familiar with the matter. Since Apple plans to produce servers mainly for its own needs, the production quantities discussed with Foxconn are relatively small. Currently, the two parties have not reached a final agreement in their negotiations.