Hi-P

Re: Hi-P

Postby mrEngineer » Fri Dec 25, 2009 11:05 pm

Winston, good job in detecting the fall in margins! wonder how did you manage to get such info before the report was issued. =)

Nonetheless, I was inspired by FinanceCaptain tech sector analysis and couldnt agree more to the possible explosion of growth of mobile products and services in China.

Just like to seek your and fellow forumer's view, whether Hi-P is still a viable company/stock to bet on (be it long, middle or short term)? I scoured the list of companies to only find Hi-P, Longcheer & Sinotel as potential candiates to benefit this growth. Longcheer seems to have weird debt issues (extremely high trade payables) with their unknown product and Sinotel is already past its previous peak (upside is unknown)..
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Re: Hi-P

Postby winston » Sat Dec 26, 2009 7:51 am

Hi Mr. Engineer,

I dont know this industry that well. However, I did see some Analyst's report mentioning that margins have bottomed. I've turned around companies before and I know that it's not easy. Things tend to take much longer than planned.

I also heard somewhere that RIMM's margins were falling.

So I put the two together and decided that I was not going to wait.

By the way, you may also want to keep an eye on the shares listed in HK. I think they are much bigger than those in Singapore. Foxconn comes to mind.

Again, I dont know this industry that well and dont think that I would be really able to make much money off it.

Take care,
Winston
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Re: Hi-P

Postby mrEngineer » Sat Dec 26, 2009 9:30 am

thanks winston for your advice. I just started out investing this year. Not ready to venture abroad yet. Still learning to crawl. =)
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Re: Hi-P

Postby kennynah » Sat Dec 26, 2009 2:25 pm

there's no difference investing thru sgx or nyse....
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Re: Hi-P

Postby millionairemind » Wed Sep 22, 2010 9:26 am

Punters and house traders are latching on any news to push shares.

Up 17% now.

http://info.sgx.com/webcoranncatth.nsf/ ... penelement
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Disclaimer - The author may at times own some of the stocks mentioned in this forum. All discussions are NOT to be construed as buy/sell recommendations. Readers are advised to do their own research and analysis.
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Re: Hi-P

Postby winston » Wed Sep 22, 2010 11:30 am

Not vested

Singapore Hot Stocks-Hi-P soars on higher profit forecast


SINGAPORE, Sept 22 (Reuters) - Shares of Singapore electronics contract manufacturer Hi-P International rose 15.4 percent to a record high on Wednesday after it forecast higher revenue and profit this year.

Hi-P shares were traded at S$1.01 at 0230 GMT, with over 5.6 million changing hands.

Hi-P raised its full-year guidance due to improved productivity and better cost controls, it said in a late Tuesday statement. [ID:nSNZb6Js5T] DBS Vickers, which has a "buy" rating on Hi-P, said the contract manufacturer has now raised its guidance for a third time in three months.

The broker upped its earnings forecast for Hi-P by 11 percent for 2010 and 10 percent for 2011, and increased the target price to S$1.26 from S$0.94.


Source: Reuters
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Re: Hi-P

Postby winston » Thu Sep 30, 2010 7:24 pm

Not vested. From Lim & Tan:-

Due to the launch of a second generation iPad in 2Q ’11 (which is thinner, lighter and comes with an additional built in camera and USB port), Goldman Sachs is expecting iPad sales to surge to 35mln units in 2011, above current consensus estimate of between 24-30mln units, and up from this year’s 12-16mln units estimate.

If true, it would be very positive news for Hi-P as they have just started to be involved in the production of components and modules for iPad in 3Q ’10 and due to the overwhelming demand, would catapult Apple to be amongst one of its top customers this year aside from Research In Motion and P&G (Braun and Gillett).

Separately, Hi-P bought back another 272,000 shares at an average cost of S$1.01 each yesterday. While “only” representing 8% of yesterday’s total volume traded compared to 48% the day before, we note that S$1.01 would be the highest price they have bought back since the company started their buy back program in early 2009. Their current buy back mandate still allows them to buy another 55,300,600 shares.

We maintain BUY on Hi-P.


http://www.remisiers.org/cms_images/res ... g_Hi-P.pdf
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Re: Hi-P

Postby winston » Fri Oct 01, 2010 12:06 pm

Not vested. From Lim & Tan on Sep 28:-

Research In Motion (RIM), a major customer of Hi-P unveiled a tablet computer to compete with Apple’s iPad yesterday.

Called the BlackBerry PlayBook, it has a 7 inch screen which is smaller than the iPad’s 9.7 inch screen. It is slimmer and lighter than the iPad but the price was not disclosed.

PlayBook will be available in the US in 1Q 2011 and other countries in 2Q 2011.

RIM is counting on the PlayBook and a new smartphone called BlackBerry Torch to help stem its market share loss (its market share fell to 18.2% in 2Q ’10 from 19% a year earlier).

Separately, Goldman Sachs said that Apple is currently planning to introduce a second generation iPad in 2Q 2011 that is smaller and lighter than the current version (which has sold 1mln units a month since its debut in Apr ’10).
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Re: Hi-P

Postby winston » Fri Oct 01, 2010 12:13 pm

Not vested. From Lim & Tan on Sep 22:-

Management revised upwards their previous guidance provided on 2 Aug ’10 that FY2010 profit will be comparable to FY2009 to FY2010 profit will be better than FY2009.

The reasons for the improved performance were improved productivity and better cost controls.

The above would likely be the reason for the company to have stopped their share buy back program on 7 Sept ’10, when they last purchased 468,000 shares at 86 cents each, raising their buy back amount to 29.087mln shares or 33.5% of their allowable buy back mandate.

The above also comes shortly after its major customer Research In Motion reported 2Q ended Aug ’10 sales rose 31% to $4.62bln, coming in way ahead of expectations of $4.49bln and guided for 3Q ending Nov ’10 sales of $5.3-5.55bln, also way ahead of expectations of $4.82bln, thanks to the successful launch of its new product Blackberry
Torch.

Further, we understand that the company has started mass production in 3Q ’10 for a new customer Apple for their new and highly successful tablet computer (iPad). This new product which was very successful was only just recently launched in China and initial reviews were very positive.

We understand that their key competitor for this new customer and product would be the world’s largest contract manufacturer Hon Hai.

Due to the successful debut of the new customer and product as well as successful launch of its existing customer’s new product Blackberry Torch, we understand that management is quietly confident that 2011 bottom-line could see a retest of 2008’s
all time high profit of $102mln. No wonder that they have been so aggressively buying back their shares in the open market.

While this year’s PE of 13x is not cheap compared to its peers, next year’s PE of 7.6x is more reasonable compared to Venture and Hon Hai’s 12x.

The stock price has moved decisively above its several times tested resistance level of 75-76 cents and hit a recent high of 92 cents (the highest since 2007).

The stock had hit an all time high of $1.84 in early 2006 and its high in 2007 was $1.03.

We had only upgraded the stock to a Neutral in June this year and have missed out on its significant run in the last 3 months.

We are upgrading the stock to a BUY now on the back of its undemanding 2011 valuations as well as contributions from its new customer Apple.
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Re: Hi-P

Postby winston » Fri Oct 01, 2010 12:17 pm

Not vested. From Lim & Tan on Sep 17:-

Hi-P’s major customer Research In Motion (RIM) reported 2Q ended Aug ’10 sales increase of 31% to $4.62bln, way ahead of expectations of $4.49bln and profits blew past expectations of $1.36 per share coming in at $1,46, while shipments rose a record
45% to 12.1mln units.

And management guided another record beating quarter ahead with sales expected to range between $5.3-5.55bln, way ahead of expectations of $4.82bln and profit of $1.62-1.70, way ahead of expectations of $1.39.

As a result, the stock surged 10% in after hours trading.

The above likely explains the strong turnaround that Hi-P has guided the market for 2H ‘10, where the company is expected to report a strong profit of $55-56 mln against 1H ‘10’s loss of $1.8mln.

However, we note that since Hi-P’s initial positive revision guidance to the market of their turnaround in mid-June ’10 when the stock was trading close to the 50 cents level, in a span of 3 months, the stock price has risen a robust 80% to 90 cents currently
(hitting its 52 week high of 92 cents on 9 Sept ’10), partly on the back of its strong turnaround as well as its aggressive share buy backs.

Its last share buy back was done on 7 Sept ’10 where the company bought 468,000 shares at 86 cents each increasing its cumulative buy backs to 29.087mln shares, representing 33.5% of its max allowable buy back amount of 86.827mln shares. The highest price paid was at 86.5 cents on 13 Aug ’10.

With a net cash position of $196.497mln, it represents 24.6% of its current market cap of
$798.46mln against 44% when the stock was close to the 50 cents level in Mid-June ’10.

At 90 cents, the stock price is coming close to its mid-2007 high of $1 and puts its 2010 PE of 14-15x at a premium to bigger peers such as Venture and Hon Hai’s 13-14x.

Regretably, we “only” upgraded the stock to “Neutral” in mid-June ’10, having missed out on its significant run over the last 3 months.

While the stock may remain strong on the back of its continued share buy back program, positive newsflow from its major customer as well as its own robust 2H ‘10 performance, we note that its current valuations is not compelling compared to its bigger peers and it is also coming close to its 2007 peak level, we maintain Neutral.
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