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Foxconn International Holdings Ltd (FIH), is the trading name of Hon Hai Precision Industry. It is by far the largest manufacturer of electronics worldwide. It is Taiwan´s largest company, with approximately $50 billion in sales per year.

FIH (stock ticker: 2038.HK) is listed in Germany (Berlin, Frankfurt and Munich) and Hong Kong, but their main activity goes on in Hong Kong. Their main products: motherboards, graphics cards, computer cooling solutions, apple products and cell phones. They have big clients such as Motorola, Sony Ericsson, Nokia and Apple.

The timing to invest in this company seems about right since Apple´s iphone 3G will be made by FIH. They have won  a contract for 3 million units shipping in June, and this could be just the start.

Let´s analyse the numbers of these company and see the stock price evolution:

As we can see in the above graph, FIH had a maximum value of 25.10 HKD per share in July 2007, and has currently recovered from its 52 week minimum last month, 9.68 HKD. Now its price is 12.72 HKD, still near the lows, and with a lot of potentiality.

Some numbers;

• PER of 15.43
• ROE of 25.41%
• no dividend payment

This company has a lot of potential; if Apple´s iphone 3G is a success and I believe it will be, then FIH will benefit by selling then to AAPL and gain prestige in the market, that generates more opportunities.