Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Japan
  4. Japan Exchange
  5. Sharp Corporation
  6. News
  7. Summary
    6753   JP3359600008

SHARP CORPORATION

(6753)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Exclusive: Foxconn eyes sale of $8.8 billion China plant amid trade war woes - sources

08/02/2019 | 01:58am EST
The logo of Foxconn, the trading name of Hon Hai Precision Industry, is seen on top of the company's building in Taipei

TAIPEI (Reuters) - Taiwan's Foxconn is exploring the sale of its new $8.8 billion display panel factory in China, people familiar with the matter told Reuters, as demand for the product wanes amid an intensifying U.S.-China trade war.

Foxconn, formally known as Hon Hai Precision Industry, is in talks to appoint banks to find a buyer for its liquid crystal display (LCD) factory that is being built in the southern Chinese city of Guangzhou, said two people with direct knowledge of the matter.

A sale would come at a delicate time for Foxconn, which has extensive investments in China, a large roster of U.S. clients that includes Apple Inc, and is having to navigate a tricky path amid the protracted trade war between Washington and Beijing. It would mark one of its largest divestments from China.

Foxconn's discussions are at an initial stage and it has not yet come up with a price tag for the so-called Gen-10.5 facility specialising in large-screen LCDs, the sources said, adding a sale was not a surety.

"It's not an easy sale and it could take a while," said one of the sources, citing tepid global demand for large-screen LCDs.

Foxconn, in a written statement to Reuters, said: "As a matter of company policy, Foxconn does not respond to market rumours or speculation." The sources requested anonymity because the deliberations are confidential.

U.S. President Donald Trump sharply raised the stakes in the bruising trade war with China and jolted global financial markets by vowing on Thursday to impose a 10% tariff on $300 billion of Chinese imports from September 1.

The trade war has disrupted technology global supply chains in a major way, forcing Foxconn to review its own. That and slowing demand for large-screen televisions and monitors had prompted Foxconn's management to seek a buyer for the LCD plant, one of the sources familiar with the management's thinking said.

Questions were also being raised within Foxconn on the need for the Guangzhou project. "Existing plants are already not running at full capacity ... why need another one?," the source said.

The second source said the new factory would not go into production until early October, which makes it less appealing for buyers because of the additional risks as compared to an already operating plant.

The Nikkei daily reported earlier this year that the company would delay most of its planned production in Guangzhou for a minimum of six months, but Foxconn said the project was on schedule.

FLAGSHIP INVESTMENT

Dubbed the largest single investment ever in the southern city by Chinese media, Foxconn announced the Guangzhou plant in 2016, hoping to start operations by 2019 to meet an expected rise in demand for large-screen TVs and monitors in Asia in a challenge to top Chinese display maker BOE Technology Group.

The project was mainly run by a joint venture between the Guangzhou government and Japan's Sakai Display Products, an advanced panel factory owned by Foxconn founder Terry Gou and Japan's Sharp Corp, Foxconn's display unit.

The Japanese panel maker said on Thursday it would build a plant in Vietnam to make flat screens and electronic devices to guard against additional U.S. import tariffs on Chinese goods.

The global display industry has been struggling with a supply glut and tumbling earnings due to moribund sales of televisions and smartphones, and the worsening trade dispute that could raise product prices and dampen consumer demand.

Sharp reported on Thursday a double-digit decline in profit for the quarter ended June due to sluggish tech demand.

Taipei-based Foxconn said in April that it remained committed to building a display plant and tech research facilities in Wisconsin amid growing skepticism about the fate of the $10 billion project. Trump had cited Foxconn's Wisconsin plans as proof he was reviving American manufacturing.

But Foxconn is already under the spotlight for having failed so far to meet job-creation targets in Wisconsin.

The company told Reuters earlier this year it was reconsidering plans to make advanced LCD panels at Wisconsin.

(Reporting by Yimou Lee; Editing by Anne Marie Roantree and Muralikumar Anantharaman)

By Yimou Lee


ę Reuters 2019
Stocks mentioned in the article
ChangeLast1st jan.
APPLE INC. -0.24% 163.31 Delayed Quote.24.18%
BOE TECHNOLOGY GROUP COMPANY LIMITED -0.61% 4.85 End-of-day quote.-19.17%
EURO / BRITISH POUND (EUR/GBP) 0.36% 0.85284 Delayed Quote.-4.58%
HON HAI PRECISION INDUSTRY CO., LTD. -0.47% 105 End-of-day quote.14.13%
LETS HOLDINGS GROUP CO., LTD. -1.79% 6.58 End-of-day quote.-15.42%
LOOK HOLDINGS INCORPORATED -1.10% 1258 End-of-day quote.31.45%
MSCI TAIWAN (STRD) 1.40% 723.928 Real-time Quote.18.81%
NIKKEI 225 1.00% 28029.57 Real-time Quote.1.13%
SAKAI HOLDINGS CO.,LTD -0.99% 598 End-of-day quote.7.55%
SEEK LIMITED -1.58% 34.2 End-of-day quote.19.87%
SHARP CORPORATION -0.16% 1263 End-of-day quote.-19.25%
All news about SHARP CORPORATION
06:26aSharp NEC releases upgraded cinema projector
AQ
11/23Sharp Unveils Newest Large-Format 4K Ultra-HD Interactive Display to Meet Evolving Clas..
AQ
11/23Sharp NEC's Active Scene display comes to XOGO media players
AQ
11/17Sharp unveils 80-inch display to bolster classroom, workplace engagement
AQ
11/15As autos go electric, Toyota chases hydrogen dream
RE
11/05Sharp's Fiscal H1 Profit Soars 79%
MT
11/05Japan Shares Slump on Friday; Toyota Declines 2%
MT
11/03Sharp NEC Display Solutions intros large format displays
AQ
11/02Sharp NEC displays offer versatility to meeting spaces
AQ
10/18Sharp eyes re-entering U.S. TV market in spring of 2022
AQ
More news
Analyst Recommendations on SHARP CORPORATION
More recommendations
Financials
Sales 2022 2 520 B 22 223 M 22 223 M
Net income 2022 69 593 M 614 M 614 M
Net Debt 2022 360 B 3 173 M 3 173 M
P/E ratio 2022 11,1x
Yield 2022 2,53%
Capitalization 771 B 6 824 M 6 803 M
EV / Sales 2022 0,45x
EV / Sales 2023 0,43x
Nbr of Employees 50 478
Free-Float 36,5%
Chart SHARP CORPORATION
Duration : Period :
Sharp Corporation Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends SHARP CORPORATION
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus UNDERPERFORM
Number of Analysts 11
Last Close Price 1 263,00 JPY
Average target price 1 335,45 JPY
Spread / Average Target 5,74%
EPS Revisions
Managers and Directors
Cheng Wu Tai Chairman & Chief Executive Officer
Katsuaki Nomura Executive President, COO & Representative Director
Mototaka Taneya Managing Executive Officer, GM-R&D Business
Yasuo Himeiwa Independent Outside Director
Yutaka Nakagawa Independent Director
Sector and Competitors
1st jan.Capi. (M$)
SHARP CORPORATION-19.25%6 824
SONY GROUP CORPORATION32.04%148 920
PANASONIC CORPORATION4.07%25 577
LG ELECTRONICS INC.-9.63%17 787
DIXON TECHNOLOGIES (INDIA) LIMITED89.57%4 034
XIAMEN INTRETECH INC.-13.00%4 014