Hi-P   

HI-P INTERNATIONAL LIMITED

Hi-P’s 1Q2013 net profit jumps 354.0% to S$6.9 million

on better product mix and improvement in productivity

• Better product mix and improvement in productivity in 1Q2013

•

of S$96.7 millionStrong net operating cash flow of S$74.6 million and healthy net cash position

• Expects FY2013 sales and net profit to outperform FY2012

Singapore

Barring any other unforeseen circumstances, the Group wishes to guide its performance as follows: The Group expects to record higher revenue in 2Q2013 as compared to 2Q2012. The Group expects to record a profit in 2Q2013. The Group expects to record higher revenue and profit in 2Q2013 as compared to 1Q2013. The Group expects higher revenue and profit in FY2013 as compared to FY2012. – 7 May 2013, SGX Mainboard-listed Hi-P International Limited (Bloomberg Ticker: HIP SP, “Hi-P”, “赫 比 国 际 有 限 公 司 ” or “the Group”), a global contract manufacturer of smart phones, tablet computers and other consumer electronics, has announced its financial results for the three months ended 31 March 2013 (“1Q2013”). While revenue dipped marginally by 3.9% year-on-year (yoy) to S$267.6 million, the better product mix and improvement in productivity resulted in a 354.0% jump in net profit to S$6.9 million. The Group’s bottom-line performance would have been even better, if not for a S$3.8 million impairment loss on property, plant and equipment and S$0.8 million allowance for inventory obsolescence as a result of fire-related damage at one of the Group’s manufacturing plants in Shanghai.

 

Lim & Tan Sec is upgrading Hi-P to Trading BUY from Neutral as -

-that prospect for the company is turning brighter as the company will be benefitting from the launch of a mass market phone by Apple, their key customer - an improving acceptance of Blackberry’s new smart-phones the Z10 and Q10 -

and maiden contributions from new customers such as Amazon and Nike -

upgraded  2013 profit estimate from $22mln to $50mln which will represent a 178% improvement from last year’s $18mln and translates to a forward PE of 12.5x.

 

OSK DMG upgrades to Buy with $0.84 TP. House cite HI-P as a proxy to RIM’s revival with Blackberry Q10. The successful launch and strong take-up of RIM's BlackBerry Q10 should herald a turnaround at RIM, and this will in turn benefit Hi-P as a tier-one component supplier for RIM. House channel checks in Taiwan revealed that BlackBerry has significantly increased its BB10 device (both Q10 and Z10) build plan to more than 2m units/month in view of the backlog in demand. Since March, Taiwanese component suppliers and contract manufacturers such as Silitech (keypad) and Wistron (ODM) saw increased loadings on the back of ramp-up in orders for BB10 devices (especially for the Q10). We expect Hi-P, as a proxy play for BlackBerry's revival, to have the most meaningful leverage to RIM's recovery as BlackBerry-related products constitute around 50% of Hi-P’s revenue. With rising orders coming from key customers Apple and RIM, expect utilisation rates at Hi-P’s factories to ramp up, driving earnings growth from 2Q onwards.

 

The News

Our thoughts: While we previously argues that it was still uncertain whether the demand for BlackBerry products was firmed as sales of the BlackBerry Z10 (the touchscreen phone) started to slow, and never really took off in the US, we now believe that Q10 (the keyboard phone) will become a success thanks to the die-hard QWERTY fans as well as the corporate customers and government officials who care about security. This applies the same to Hi-P, a Singapore listed component maker for BlackBerry and iPhone who previously suffered as a result of the downturn of Apple’s performance. We now put our SELL recommendation for Hi-P under review and believe it is a good proxy to BlackBerry.

Source:OSK-DMG: Research in Motion (RIM) has recently launched the highly anticipated BlackBerry Q10 smartphone. It was a total success in both UK and Canada with corporate customers queuing to buy in batches, clearing the stocks fast.

 

The Board of Directors of Hi-P International Limited (the " Company" ) wishes to announce that the Company will release its First Quarter financial results for 2013 via SGXNET before the opening of trading on 8 May 2013.

 

PROFIT GUIDANCE IN RELATION TO THE COMPANY’S FINANCIAL PERFORMANCE FOR

THE QUARTER ENDED 31 MARCH 2013

The Group expects to report a marginally lower revenue but higher profit in 1Q2013 as compared to 1Q2012. This was mainly due to improvement in productivity, higher cost savings, change in product mix and partly offset by a provision of approximately S$4.8 million in respect of the estimated net carrying value of the renovation, machineries and inventories that were damaged by the fire that occurred on 19 Feb 2013 at one of the Group’s manufacturing plants in Shanghai.

 

Record Date *	06-05-2013
Record Time *	17:00
Date Paid/Payable (if applicable)	15-05-2013

 

Hi-P International's revenue fell 3% to S$1,167m Earnings dropped for 3rd year in a row.

According to DBS, Hi-P International net profit dived 60% y-o-y to S$17.9m on the back of a 3% drop in revenue to S$1,167m.This is the 3rd year of declining earnings.

Here's more: 4Q12 net profit of S$15.6m comfortably beat our S$10m estimate as gross margin of 10.7% was significantly better than the 7.3% recorded in 9M12, due to a change in product mix. Earnings also benefited from a S$2.0m reversal of impairment loss on Mexico assets.

Management expects both revenue and profit to improve in FY13 but they have guided for a loss in 1Q13 as seasonally lower volumes and lower Apple orders are unlikely to cover a higher cost base. Going by past quarterly performances, it appears that Hi-P’s breakeven sales is higher at > S$280m.

To be profitable, sales have to exceed breakeven level or more cost cutting is needed. Based on typical seasonality and new product launches from Blackberry, we expect breakeven in 1H13 and a steep ramp up in 2H13. We have cut FY13F earnings by 32% to factor in lower margin assumptions.

We believe Hi-P’s share price reflects most of the downside risk after correcting 20% since our downgrade last Oct. But, it is too early to turn positive as earnings have yet to stabilise. We have lifted TP to S$0.71 as we roll over to 1x FY13 P/BV. We upgrade the stock rating to Hold on valuation grounds.

 

This one is a good candidate with good prospects...

    Worth watching it in the coming weeks... 

cobrajr      ( Date: 26-Feb-2013 22:52) Posted: Watch tis 1 moving up

 

Wait for 49c. haha

cobrajr      ( Date: 26-Feb-2013 22:52) Posted: Watch tis 1 moving up

 

Watch tis 1 moving up

 

CIMB report:

http://www.remisiers.org/cms_images/research/Feb18-Feb22_2013/Hi-P22022013cimb.pdf

 

Hi-P’s 4Q2012 profit grew 65.0% to S$15.6 million

New projects and customers to drive growth in FY2013

• Board of Directors to propose final dividend of 1.2 Sing Cents

• Healthy balance sheet and net cash position of S$33.2 million

• Management expects FY2013 performance to exceed FY2012

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_D5CF25326847C6E248257B190038EFE4/$file/HiP_4Q2012PressRelease_Final.pdf?openelement

 

.Next 4Q, management had better not surprised again on the downside!

HI-P: 3Q net profit of S$3m only but 4Q expected to be stronger

 

newton's dun noe what law states apples fall from the tree.... now apple falling, will it have effect like the last apple fall which brought Hi-P tgt with it?

 

How cm during yr Jul10, no pple has  followed my call?
Hi-P has reached 1.00 & abv b4 during 2011 if I'm not wrong...

('',)

Bon3260      ( Date: 14-Jul-2010 19:58) Posted: If Hi-P can stay 0.765 @ least afew days times. Hi-P might cheong 0.800 & abv... ('',) Bon3260      ( Date: 20-Mar-2010 14:53) Posted: Hi-P's presently facing corrections during our STI 2,900 - 2,950pts. Once corrections over, Hi-P'll cheong till 0.70+ & abv... ('',)

 

Very resilient.

Wait for 88cts next.

 

emm seem like this one is moving up on...

 

 

Has a good dream... cheers...

FearValueGreed      ( Date: 06-Nov-2012 18:21) Posted: ok I will buy at 50cents. thank you.

 

ok I will buy at 50cents.
thank you.