Hi-P

Re: Hi-P

Postby iam802 » Fri Oct 01, 2010 12:27 pm

winston wrote:...

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

..


A weird way of writing analyst report.
1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

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Re: Hi-P

Postby winston » Fri Oct 01, 2010 6:54 pm

Not vested. From Lim & Tan:-

The company continued to buy back shares yesterday at $1.02 a share (buying 1.045mln shares).

This is significant as it accounted for 46.7% of yesterday’s traded volume of 2.239mln shares versus the previous day’s 8%. On 28 Sept ’10, or 2 days earlier, the buy back had also accounted for a significant 47-48% of the day’s trading volume.

At $1.02, Hi-P is at its highest price since mid-2007 where it had hit a high of $1.03.

Before that its previous peak levels were in early 2006 ($1.85) and late 2004 ($1.89).

Looking at the aggressive buy backs done in the last 3 days at prices so close to its 2007 peak level, we believe it is a matter time before the stock will likely exceed this price level.

$1.02 is the highest price that the company has paid since its buy back program started in early 2009 and it’s current mandate still allows them to buy back another 54,255,600 shares.

Management’s aggressive buy back is done as the company is about to experience a significant recovery in earnings on the back of contributions from new customer Apple and new product launches by Research In Motion.

We maintain BUY
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Re: Hi-P

Postby winston » Mon Oct 11, 2010 7:32 pm

Not vested. From Lim & Tan:-

The company resumed buying back shares last friday after having stopped since 1 Oct ’10. The company bought 463,000 shares at $1.05 each, its highest buy back price since it started its buy back program in early 2009.

Its buy back of 463,000 represents 36% of the total volume traded versus 4.7% on 1 Oct ’10. However, before 1 Oct ’10, the company had bought back as much as 47% of the average daily volume traded.

The stock had hit an intra-day high of $1.10 on 1 Oct ’10 (but closed at $1.05 last friday). This is its highest close in 4.5 years.

Separately, Hi-P’s major customer Research In Motion (RIM) rose 3% last friday after United Arab Emirates which had threatened to ban the use of the company’s services due to security concerns said that all BlackBerry services will continue to operate as normal as it complies with local regulations.

Hi-P is counting on new product launches by existing customer RIM and maiden contributions from new customer Apple to help drive a strong turnaround in 2H10.

We maintain our BUY recommendation.
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Re: Hi-P

Postby winston » Tue Oct 19, 2010 6:18 pm

Not vested. Did you notice the number of times Lim & Tan has been pushing this stock ?

And today, they are doing it again ...


Hi-P will announce their 3Q ’10 results before trading on 2 Nov ’10.

We are expecting the company to report a robust set of results with 3Q ’10 profit coming in around $30mln versus last year’s $10.8mln and last quarter’s $12.4mln, underpinned by maiden contributions from Apple, new product launches by existing customer Research In Motion as well as stable demand from P&G and Colgate.

$30mln quarterly profit would be the second highest quarterly profit achieved in the company’s history since 4Q ’07’s $31mln.

Since hitting an intra-day high of $1.15 on 13 Oct ’10, Hi-P’s share price has been correcting and closed at $1.04 yesterday, partly due to overbought technical factors and partly due to the fact that they have ceased their share buy backs since 8 Oct ’10 when they bought 463,000 shares at $1.05 each.

The company is not allowed to buy back shares 2 weeks ahead of its results announcement.

At $1.04, the stock is close to its 2007 peak of $1.03.

Separately, its new customer Apple reported that its iPad sales rose from US$2.166bln in 2Q ’10 to US$2.792bln in 3Q ’10 with unit volume rising from 3,270 to 4,188.

Independent reseach tech firm Gartner expects Apple’s iPad sales to rise from about 20mln units this year (implying 12.54mln units in 4Q ’10) to 55mln units next year and 208mln units in 2014.

This bodes well for Hi-P as they have just started manufacturing components for Apple’s iPad in 3Q ’10.

We see weakness as a buying opportunity.
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Re: Hi-P

Postby winston » Tue Nov 02, 2010 8:38 am

Not vested

Electronics contract manufacturer Hi-P International's third-quarter net profit tripled to S$33.2 million from a year earlier, due to strong demand for its products and as it saw lower costs and improved productivity.

The firm said it expected revenue for the current quarter to be comparable to the previous three months.


Source: Reuters
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Re: Hi-P

Postby winston » Tue Nov 02, 2010 6:25 pm

Not vested. Another report from Lim & Tan:-

3Q ’10 profit surged 208% yoy and 175% qoq to $33.2mln, above consensus forecast of $30mln, reflecting higher than expected sales growth (+81% yoy and +58% qoq to $286mln) as well as gross margin (3Q ’10 gross margin expanded to 22.7% versus 14% a year ago and 15.6% a quarter ago).

Bottom-line would have been even better if not for $4.4mln impairment loss (versus $2.87mln a year ago) and forex loss of $5.36mln (versus loss of $1.4mln).

Due to the surge in business activities, working capital needs also increased significantly with inventories jumping from $61mln to $119mln and inventories jumping from $133mln to $244mln.

Despite this, the company was still able to generate $1mln of free cash flow due to its low capex requirement of $4.7mln.

Financial position remains robust with net cash position of $173mln.

Looking ahead, management expects 4Q ’10 sales to be comparable to 3Q ’10’s $286mln. This implies 67% yoy rise from year ago’s $171mln.

This reflects new product launches by its key customers such as Research In Motion, Apple as well as P&G.

We are expecting next year’s bottom-line to grow 56% to $100mln, giving an undemanding prospective PE of 9.5x against peer average of 14-15x.

We maintain our BUY recommendation.
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Re: Hi-P

Postby winston » Wed Nov 03, 2010 7:08 pm

Not vested. From DMG:-

PE 18; Rev growth 20% ?


Strong turnaround

Earnings exceeded expectations; Reiterate BUY. Hi-P International’s 3Q10 PATMI tripled YoY to S$32.2m, swinging nine month earnings back to the black (S$31.1m).

We attribute this to:-
1) a strong project pipeline boosting the top line and
2) effective cost control measures improving the bottom line.

1H10 was loss-making due to an early project termination, but we believe that is largely behind the company and the full potential will be seen in FY11.

We revise our EPS forecast upwards by 15% and 14% for FY10 and FY11 respectively. We maintain our BUY call, but raise TP to S$1.25 (previously S$0.97), pegging FY11 earnings to its 5-yr historical P/E of 12.9x.


Outlook gets brighter. Hi-P International currently derives 40% of its revenue
from the smartphones and 20% from the PC industry.

Smartphone shipments are forecasted to grow by 24.5% in 2011 by IDC, and PC shipments are expected to rise by 12.5% according to iSuppli.

The group is currently handling four big projects with average project life lasting at least six months. This implies a stable revenue stream until 1Q11, and with its established track
record, we are optimistic on management securing new projects next year.


Cost in check. Unlike competitors who have been relocating their plants towards western China due to continuing wage hikes, Hi-P has no plans to follow suit as management view the costs of retraining workers would outweigh the savings from wage reductions.

Along with intense competition continuing to exert downward pressure on prices, management has taken the following steps to maintain margins:
1) Consolidate operations by shutting down underperforming plants;
2) apply lean manufacturing practices to shorten production cycle; and
3) increase investment to automate processes.

http://www.remisiers.org/cms_images/Hi-P_DMG-031110.pdf
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Re: Hi-P

Postby Aspellian » Fri Dec 10, 2010 2:45 pm

Note that Apple is now using Hi-P as one of its subcon for IPad (another major subcon is of cos Hon Hai or Foxconn). thinking aloud that prob HIP got the contract cos of the working environment saga in Foxconn.

iPad is still early in its product lifecycle - it should benefit HIP for a year or 2 - unlikely apple will anyhow switch suppliers (as it would have done its stringent QC). i remember years back when MFS rose to heady heights of >$1 is because its riding on the wave of Motorola's clamp shell phones. so like all matters of life, it is impt to ride on the right wave. see how far HIP can go.

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New camera-toting iPad?
HONG KONG/TAIPEI - COMPONENT suppliers for Apple Inc's iPad are gearing up for a new round of production in the first quarter, sources said on Friday, with one saying the product will be a revamp of the popular tablet computer including front- and back-mounted cameras.

Touchscreen chip designer Wintek Corp, battery maker Simplo Technology Co Ltd and AVY Precision, an unlisted maker of covers for electronic products, are among suppliers for the next batch of iPads, three people familiar with the situation said.

Two of the sources could only confirm that they were ramping up for a new round of production in the first quarter for components previously supplied for the original iPad.

While a third said the ramp-up was for a new iPad that would feature cameras on the front and rear.

An Apple spokesman declined to comment. Camera module makers Genius Electronic Optical Co Ltd and Largan Precision Co Ltd were also starting new supply deals with Apple, two sources said, but neither could confirm for which product the modules were intended.

Component makers generally do not know what a finished product will look like or what software it will run because they are only responsible for manufacturing one part of before passing it on for assembly. -- REUTERS

http://www.straitstimes.com/BreakingNew ... 12365.html

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Re: Hi-P

Postby Aspellian » Mon Dec 13, 2010 9:57 am

Hi-P International (H17.SG) is +4.7% at $0.995 with 1.13 million shares traded.

Today’s rise marks the stock’s first strong showing since its better-than-expected 3Q earnings November 1 ($33 million net profit); downward trend since then likely as those results had been priced in after the stock’s 10% rise from September 22 on bullish FY10 guidance; but perhaps with the festive shopping season in full swing, investors are getting a reminder of Hi-P’s earnings potential, as a beneficiary of booming smartphone and tablet sales.

DBS Vickers says the company is poised for an earnings breakthrough; smartphones would be driven by higher volume from bellwethers RIM and Apple (both are key customers).

The house has a Buy rating with $1.30 target; “record earnings look within reach in view of strong global demand.” Orderbook suggests $1.03 resistance.

Source: Dow Jones Newswire

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Re: Hi-P

Postby winston » Mon Jan 17, 2011 8:46 am

Not vested

Electronics contract manufacturer Hi-P International said it expects its revenue for the fourth quarter to be higher than the previous three months due to higher demand from its customers.

It had previously guided for its fourth-quarter revenue to be comparable to the third quarter.


Source: Reuters
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