Hi-P International

Hi-P posts 16.9% rise in 2Q earnings to $14.4 mil on higher margins

SINGAPORE (Aug 1): Hi-P International reported a 16.9% increase in earnings to $14.4 million for the 2Q19 ended June, from $12.3 million a year ago, on the back of higher profit margins.

The global contract manufacturer of smart phones, tablet computers and other consumer electronics saw its earnings per share (EPS) rise 17.8% to 1.79 cents in 2Q19, from 1.52 cents in 2Q18.

2Q19 revenue fell 5.2% to $286.4 million, from $302.0 million a year ago.

Hi-P upgraded to 'hold' as Maybank KimEng awaits lower entry point and better earnings clarity

SINGAPORE (June 12): The ongoing US-China trade war has effected some of Singapore’s tech stocks. One of which is Hi-P International, according to Maybank Kim Eng.

The research house has upgraded its recommendation on Hi-P to “hold” from “sell” previously with an unchanged target price of $1.22, as the negatives have been priced in. And since late-April, the stock has dropped by 22% due to a broad sector sell-off.

Analysts have conflicting views on Hi-P with competition expected to increase in near-term

SINGAPORE (May 6): Analysts seem to have a conflicting outlook on Hi-P International, following the group’s latest results announcement.

The group on May 2 posted a 5.7% y-o-y increase in its 1Q19 earnings to $10.7 million, compared to $10.1 million in 1Q18, due to a 70% reduction in foreign exchange losses.

Maybank KE cuts Hi-P to 'sell' after share price run-up

SINGAPORE (April 9): Maybank Kim Eng is downgrading its call on Hi-P International to “sell” from “hold” previously with an unchanged price target of $1.22, which is based on 1.5 times FY19E price-to-book value.

This is because the research house now deems Hi-P as overvalued at 14 times FY19E P/E versus its global peers’ 10.5 times, and its own 1 SD above the three-year mean of 12.3 times.

Hi-P reports 25% fall in 4Q earnings to $14.8 mil on lower demand

SINGAPORE (Feb 21): Hi-P International, the global contract manufacturer of smart phones, tablet computers and other consumer electronics, reported 4Q18 earnings fell 24.9% to $14.8 million from $44.8 million for 4Q17.

Amid uncertain economic conditions, 4Q18 revenue decreased 10.2% to $441.9 million from a year ago as a result of a decline in market demand from various segments.

Gross profit decreased 19.3% y-o-y to $78.4 million for 4Q18 mainly due to the decline in revenue, increasingly competitive pricing and a slower pace of decrease in labour costs.

Venture Corp the safest bet amid tech sector volatility, says Maybank

SINGAPORE (Jan 8): Maybank Kim Eng remains “neutral” on Singapore’s technology sector while lowering its target prices across the relevant stocks under its coverage.

This comes after the research house cut its earnings forecasts to factor in heightened macro uncertainties, as well as higher cost of equity due to increased volatility within the sector.

Hi-P kept at 'hold' by Maybank on expectations of tough FY19

SINGAPORE (Nov 12): Maybank KimEng is maintaining Hi-P International at “hold” on expectations of a tough FY19.

Maybank says Hi-P’s 3Q18 PATMI of $33.8 million was ahead of its expectations as it had overestimated the margin erosion from pricing pressure and lower yields.

However, sales fell 8% y-o-y due to less high-component content projects, weaker market demand, and slower ramp-up for certain products by multiple customers.

3Q18 gross margin also fell 1.1ppt to 15.5% y-o-y due to pricing competition and lower yields.

Hi-P International's latest profit warning draws mixed reactions from analysts

SINGAPORE (Oct 15): Maybank Kim Eng is cutting its earnings estimates for Hi-P International after the industrial mould manufacturing company lowered its earnings guidance for the second time this year, saying it expected lower y-o-y sales and profit compared to its earlier guidance of higher revenue and similar profit.

Hi-P earnings estimates slashed by DBS due to margin worries from US-China trade war

SINGAPORE (Aug 2): DBS Vickers Securities is maintaining “hold” on Hi-P International with a lower price target of $1.21 compared to $1.80 previously, after cutting FY18F and FY19F earnings by 23% and 29% respectively to account for lower margins.

The new target price is based on a 30% discount to peers’ average PE of 16 times, versus 20% discount previously, on blended FY18F and FY19F earnings.

Hi-P downgraded to 'hold' amid trade war fears; target price slashed

SINGAPORE (May 4): Maybank Kim Eng Research has downgraded Hi-P International to “hold” and slashed its target price by more than 40% to $1.45 after the electronics manufacturer negatively revised its guidance on multiple emerging headwinds.

Previously, the brokerage had a “buy” recommendation on Hi-P with a target price of $2.43.

The lower valuation comes after Maybank cut its earnings per share (EPS) forecast by 35-45% for FY18-20.

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