Hi-P

Hi-P

Postby winston » Fri Jun 20, 2008 11:16 am

Not vested.

DBS Research re-initiaties BUY on Hi-P on the back of successful sales execution and strong results in the 2 quarters. We believe that recovery is sustainable and FY08 earnings could grow at least 58% YoY to S$90m.

Target price is S$0.80 pegged to 8x FY08 earnings. The stock is currently trading at 5.1x FY08 earnings which is attractive compared to smaller plastic peers like Meiban and Sunningdale trading at about 6.2x and 8.7x FY08 earnings respectively.
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Re: Hi-P

Postby Aspellian » Fri Jul 04, 2008 12:04 am

I read that the increased in earnings are coming from increased orders from its Wireless Business Unit.
Does anyone know whether Hi P is an OEM for RIM / Blackberry (BB)? esp if one follows this stock or in the industry . . pls advice, thanks in advance. :)

cos recently more and more companies require their staff to carry BB as part of their "biz arsenal" - (macham like hand grenade! :lol: ) cos bosses have BB and they want pple to respond to their emails on an instant basis, be it weekends or night time...

so using Peter Lynch scuttle-bug, it points me to Hi P, since BB now has also intruded my life. noticed Hi P's price is relatively stable despite current turmoil. its on my radar screen as i try to understand its cyclical biz better.

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Re: Hi-P

Postby winston » Fri Jul 04, 2008 7:52 am

Aspellian wrote:so using Peter Lynch scuttle-bug, it points me to Hi P, since BB now has also intruded my life. noticed Hi P's price is relatively stable despite current turmoil. its on my radar screen as i try to understand its cyclical biz better.


If you want to invest in the BB trend, I think it is better to buy BB itself, rather than an OEM manufacturer.

I think Peter Lynch did also say that it is better to buy Toys R US rather than the toy manufacturers..
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Re: Hi-P

Postby winston » Mon Jul 07, 2008 11:28 am

From UOB-Kay Hian:-

Raised guidance; FY08 a record year?

Hi-P has raised its guidance for 2QFY08 recently, thanks to the robust performance of its top
customer Research in Motion (RIM) and reduced foreign exchange losses.

In addition, its Polish operations have recovered. The Polish plant that has Braun as a client switched to a consignment model in 2QFY08. This will help Hi-P relieve the pricing pressure from suppliers and focus on improving capacity utilisation and production yield. Losses have been
reduced, and the breakeven point is expected to be achieved by end-FY08.

Following Mr Mahoney’s resignation in Apr 08, Chairman Mr Yao Hsiao Tung has taken on greater
responsibilities within the Group. Currently, Mr Gary Ho and his team are in charge of the Polish plant under the consumer electronic segment. Mr Ho is Managing Director for corporate business
development. Mr Zhou Wei Dong is Managing Director for the wireless segment and is responsible for product definition, design and manufacturing. Mr Lim Kay Leong is Managing Director for computing and consumer electronics.

Maintain BUY. We believe Hi-P will report a record performance this year due to its successful alliance with smart phone giant RIM. Margin improvement is driven by an increase in orders for high-end pipelines and greater insourcing.

We raise our FY08 full-year earnings forecast by 23% to S$94.6m. Our target price has been increased to S$0.83 based on 7x FY09 PE.
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Re: Hi-P

Postby iam802 » Mon Jul 07, 2008 7:22 pm

(not vested).

Hi-P appears on my end of day scan today.

From the chart, it appears to go above the various moving averages.

Unfortunately, it is still not very convincing as the volume is not very high.

Looking back further, Hi-P has been moving up steadily since Feb 08. Even its recent low in June is higher than March 08.

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Re: Hi-P

Postby kennynah » Mon Jul 07, 2008 7:35 pm

1)what is key is that the MA50 has crossed over the MA200

2)the high formed in mid May is going to be the obvious resistance... when the price should come close to this level, the folks who bought them will be more than happy to sell....for a breakeven...especially when the buy was so very high at mid may.

3) the upswing that began in feb08 to may08, is technically broken when the low formed Jun, is lower than the low formed in mid apr....technically, this mini-rally is over and may actually be forming a down trend...
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Re: Hi-P

Postby Dubby » Mon Aug 04, 2008 1:50 pm

From Phillips:-

Hi-P now sits in the cusp of two inflection points –
(1) the smartphone industry is about to explode;
(2) Hi-P’s margins seem to have bottomed out after three painful years of heavy investment and organisational
restructuring.

The two will converge to send the stock one way – up.

Smartphones will dominate:
The world is going through a shift in its perceived use of the mobile phone. Gone are the days of the simple handset, enter the smartphone – a mobile phone and personal digital assistant combined. Handset unit sales growth has tapered, but smartphone unit sales have been growing over 50% pa since 2005 – evidence that consumers are switching to smartphones (see inside for industry statistics).

The iPhone, the Blackberry, the Nokia smartphone series, these are the likes that will dominate the consciousness of the consumer for the next few years.

This is a structural change in consumer demands that this research house believes will weather current economic dislocations: changing your mobile phone is a necessary consumer exercise, changing it from a handset to a smartphone is the answer to the logical progression humankind has been taking to slowly free himself from the desk: from the desktop, to the laptop, now the smartphone.

And it will happen because the marginal cost increment of the upgrade will not be prohibitive to your pocket: telcos will subsidize it so you can have it. The iPhone 3G at US$199 is a harbinger of things to come. Even in economic troubled USA have smartphone sales surged 106% yoy for 1Q08, the fastest growing market in world.

Hi-P, whose major customer Research in Motion Ltd (RIM), maker of the ubiquitous Blackberry, will benefit given its 25% revenue exposure to the world number 2 smartphone maker. Hi-P also counts Nokia, the world’s number 1 smartphone maker, as a major customer (5% revenues). Nokia and RIM occupy the top two positions in global smartphone market share at 45.2% and 13.4% respectively for 1Q08.

Hi-P’s growing pains seem to have turned the corner: After 3 years of painful restructuring and re-positioning, Hi-P has registered three very encouraging last quarters in 3Q07 (remove one-off write-offs and P&L looks agreeable), 4Q07 and 1Q08.

Margins seem to have finally bottomed out and may be on the rise again, as capacity utilization of new plant improves and new business capabilities synergise.

Key risk: the smartphone industry is in land-grab mode, it is not a case of going head to head yet. So long as RIM and Nokia meet consumer requirements in the face of the iPhone and others, they will gain market share in absolute terms from a market that is compounding at over 50%.

If not, market shares can swing wildly to the other side, the iPhone has come from nowhere to surge to the number 3 spot worldwide (5.3%) in 1Q08 in less than a year, do not underestimate the power of Apple’s understanding of the consumer. We foresee however, both RIM and Apple, to gain at the expense of everyone else.

We recommend a BUY with a target price of $0.72 based on the current trailing 12 month P/E of 7.46x, giving a 23% upside from the current price of $0.585 (8.65x FY07 P/E, 7.46x T12M P/E, 5.18x FY08 P/E).

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Re: Hi-P

Postby kennynah » Mon Aug 04, 2008 2:15 pm

buying at 58.5 ? i will be very careful not to get screwed at the top of a resistance...
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Re: Hi-P

Postby gladiator » Mon Aug 04, 2008 2:30 pm

I think results would be out tomorrow
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Re: Hi-P

Postby winston » Mon Aug 04, 2008 9:11 pm

Hi-P Q2 net profit hits $27.1 mln

Hi-P International, a global integrated contract manufacturer, reported on Monday that for the second quarter ended June 30, 2008, net profit to shareholders increased by 101 per cent to S$27.1 million from a year ago.

This was achieved on the back of a 39.8 per cent rise in Q208 revenue to S$281.5 million over the same period.

Overall, the group's improved financial performance in Q208 was mainly attributable to a significant increase in sales for its wireless telecommunications (WL) segment, a better product mix, cost efficiencies and a reduction in foreign exchange losses. -- WONG WEI KONG, BT NEWSROOM
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