Hon Hai Precision Industry Co. rose the most in seven months in Taipei after the maker of Apple Inc. iPhones posted profit that beat estimates and said it would double dividends.
Shares climbed 4 percent to NT$96.80, the biggest gain since Oct. 20. The stock has risen 10 percent this year, more than triple the 3.2 percent increase in the benchmark Taiex index.
Hon Hai, the largest member of billionaire Terry Gou’s Foxconn Technology Group, posted gross margin, operating profit and net income that all surpassed analyst estimates. Its proposal to double its annual dividend to a record means Hon Hai can return a bigger slice of the more than $23 billion in cash it has on hand.
First-quarter net income climbed 55 percent, the fastest pace in two years, to NT$30.4 billion ($998 million), beating the NT$28.6 billion average of analysts’ estimates. Its proposed cash dividend of NT$3.80 is more than double the NT$1.60 it paid the prior year and surpassing the NT$2.50 Bloomberg Dividend Forecast prior to the announcement.