HONG KONG: Shares of Foxconn International Holdings the world's top contract cellphone maker, slipped to a two-year low after reporting another interim loss, with analysts cautioning that rising costs and a lack of clear strategy would hamper the company further.
Foxconn International's shares fell by as much as 6.7 percent to an intraday low of HK$4.56, the weakest level since April 2009. By 0355 GMT, it erased some losses to trade 5.52 percent lower, lagging the Hang Seng index's 0.03 percent rise.
"Given that there is no sign of significant changes regarding outsourcing strategy by the major smartphone players, we see limited opportunity for FIH to gain new clients/projects in the near term," Bonnie Chang, an analyst at Yuanta Securities said in a report.
"In addition, FIH had no major breakthroughs in obtaining tablet PC orders, thus missing out on the chance to capitalise on the fast growth of tablet PCs, in our view," Chang said, adding that Yuanta is maintaining a hold rating for the stock.
On Wednesday, Foxconn International, a unit of Taiwan electronics parts maker Hon Hai , posted a net loss of $75.7 million in the second half of last year, as it struggled to regain its footing amid rising costs and falling prices.
Hon Hai's Taiwan shares were down 1.91 percent, lagging the TAIEX index's 0.25 percent fall.
Foxconn International is a key supplier to cellphone brands such as Motorola and Sony Ericsson
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