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Hi Pinnacle,
It is time buy into the counter ?
Today goes up by so much. I will hold on to Hi-P and wait for next quarter result. I hoped it will hit 0.65 soon.
Maybe the appointment of new CEO from Molex is the catalyst for the uptrend of the share price.
"Resigning from position of CEO as role of CEO has been assumed by Mr Robert Mahoney under succession planning initiated some time ago. "
Molex FES (2004 to 31 October 2007)
? Executive Vice President / Regional President of Far East South
Molex, Inc (1995 to 2004)
? Executive Vice President, Chief Financial Officer (2002)
? Corporate Vice President & Chief Financial Officer (1996)
? Vice President & Treasurer (1995)
The press release is today lunch time, let hope price turn up after that ...
leechongpeng. You really like Hi-P alot.
My recommendation is to continue hold as market sentiment is very low, which will affect counters across the market.
Furthermore, report only out yesterday evening and the price has not reacted to the report yet.
Anyone know what will the trend going now result is out ? This is the time to buy again ?
Hi-P Reports Third Quarter 2007 Results
SINGAPORE, 5 November 2007 ? Hi-P International Limited, a global integrated contract manufacturer, today reported financial results for the quarter ended 30 September 2007.
Compared to Q3 FY2006, revenue for Q3 FY2007 was up 19.1% to S$262.3 million while net profit fell 97.8% to S$329,000. On a quarter-on-quarter (qoq) basis, revenue rose 30.3% while net profit declined 97.5%.
The performance in Q3 FY2007 was impacted mainly by (i) operating losses at its Polish plant, (ii) inventory write-offs, (iii) one-off recognition of costs previously incurred, and (iv) forex conversion losses.
The Polish plant continues to suffer from production yield issues and higher-than-expected operating costs, resulting in a loss of S$7.8 million in Q3 FY2007.
As part of its review of programs and projects which had gone end-of-life or had lower-than-expected demand, the group provided for:
(i) Inventory write-offs comprising provision for obsolescence, write-downs on inventories and toolings for projects which had gone end-of-life earlier than forecast and failed projects. These amounted to S$7.8 million for FY2007 and S$3.3 million for FY2006.
(ii) One-off recognition of costs previously incurred: S$4.9 million relating to the current financial year, and S$2.1 million relating to prior years.
The group also reported a $3.2 million forex conversion loss due to the weakening US dollar.
Commenting on the results, Mr. Yao Hsiao Tung, Executive Chairman of Hi-P said, ?Some of our customers had faced a setback in their market demand but we are very encouraged to see that sales to these same customers have rebounded strongly since Q3. As for Poland, we are working very closely with our customer to resolve the operating issues within the next 6 months.
Newly-appointed CEO, Mr. Robert Mahoney, added, ?I am very excited about the future of Hi-P. As one of the few remaining independent mechanics companies in our industry, Hi-P occupies a unique position in the precision tooling and electro-mechanical component market. It has a broad reach to major, global customers with a centre of gravity ? technology, cost and capability - mainly in China.
Going forward, we will focus on developing a powerful niche as a global integrated electromechanical module supplier. With our strong mechanical and time-to-market heritage, we will enhance our value to key customers by adding new or more capabilities in finishing, electronics and module integration. With a strengthened management team, we are confident that Hi-P will resume its healthy profitability down the road.?
Barring unforeseen circumstances, we expect similar revenue and higher net profit for Q4 FY2007 compared to Q3 FY2007. For the full year, we expect higher revenue but lower profit for FY2007 compared to FY2006.
Segmental Highlights
Revenue from the Wireless Telecommunications (WL) SBU rose 17.2% yoy and 45.1% qoq to S$141.5 million, mainly due to a rebound in sales from a key customer as well as higher sales from other existing customers. WL accounted for 53.9% of Group revenue, up from 48.4% in Q2 FY2007.
Revenue from the Consumer Electronics and Electrical (CE) SBU was up 24.3% yoy and 14.0% qoq to S$100.9 million, largely on the back of rising contributions from its new plant in Poland. CE accounted for 38.5% of Group revenue, down slightly from 43.9% in Q2 FY2007.
Revenue from the Computing, Automotive, Medical and Others (CA) SBU rose 8.7% yoy and 29.9% qoq to S$20 million, as sales to existing customers rebounded. CA accounted for 7.6% of Group revenue, same as in Q2 FY2007.
Financial Position
The Group?s financial position remains strong, with cash and equivalents of S$55.0 million as at end- September 2007, up from S$33.2 million as at end-December 2006. Gross debt increased to S$30.8 million as at end-September 2007 from S$25.4 million as at end-December 2006, giving Hi-P a net cash position of S$24.1 million. The Company continues to manage its working capital carefully as the Company continues to expand.
What has to come, has to come. Delay announcement can help?
The Board of Directors of the Company wishes to announce that the Company has changed the time of release of its 3rd quarter financial results for 2007 via SGXnet before the opening of trading on 6 November 2007.
Today the price drop below 0.5 ... lucky stay sideline as advise by Pinnacle ...
Many thank to Pinnacle
Many thanks for all your advise. I will stay sideline first until the direction is clearer.
This counter had broken all its previous support level and is at its all time low.
If using the new low as support, then $0.495 may be the new support.
However, do note that this is a very weak support as new low may form when they announce their financial report.
Although MACD and RSI showing new uptrend, however, my advice is to stay sideline first until the direction is more clear.
cashcornstock is correct. Oil is one of the component for plastic manufacturing.
This counter seems to be good to invest as the price is low. I may invest soon and hold it. Hope it will go up soon. Fully agree with Pinnacle. By the way, if I am not wrong, oil is one of the component to make plastic.
Hi Pinnacle, I am also vested in this share.
May I know why oil price will affect Hi P profit margin?
Any idea what is the supporting level for the share price?
Thanks
Not too much. Cut now will incur 3.5K loses at 0.5. Wait for it to go back to 0.55 than let go. Hope result wouldn't cause it to drop further. Do you advise to buy more to average down?
Just my 2 cent worth.
1) continue to hold if you had picked up the tab. As long as you don't sell, its just paper lost and the price may go up eventually. Hi-P is a big plastic molding company and I believe they will not just sit back and wait for things to happen.
2) cut loss and look for other better opportunity to recoup the loss. This is to let your $$$ look for more $$$. Revisit this counter when it shows sign of reversal in both TA and FA.
leechongpeng. You vested?
When and at what price?
If you sell now, will you incur any loss?
This counter do not have any near term prospect.
Oil price is also affecting its profit margin.
MACD buy signal appeared yesterday. Will price move?
Pinnacle. I am vested. Will the result caused the price to drop further? Would you advice to sell before result out and cut loses?
Extracted from SGX website.
| Date & Time of Broadcast | 24-Oct-2007 17:56:21 |
Other counters recovered from yesterday loses. This counter seems to only go down. When will the result be out?