Stock Name: Hi-P
Company Name: HI-P INTERNATIONAL LIMITED
Research House: DBS Vickers
DBS Vickers Securities in a May 4 research report says: "Hi-P reported bottomline of $17.9 million, from $14 million net loss last year. Excluding $0.8 million one-offs and $5.4 million higher depreciation of PPE due to the change in accounting estimate, core profit would be $24 million, above our $19 million projection.
"Sales of $243 million were 66% higher y-o-y - in line with our projection. Gross margin improved significantly to16.3% from 4.4% in 1Q10, benefiting from economies of scale, effective cost control and better product mix. Hi-P generated $47 million FCF in 1Q as cash cycle shortened to 41 days from 44 in 1Q10.
"As a result of our earnings forecast cut, target price is revised down to $1.28, still based on 11x FY2011 PE. However, upside has now narrowed to 9%. DOWNGRADE TO HOLD."
Company Name: HI-P INTERNATIONAL LIMITED
Research House: DBS Vickers
DBS Vickers Securities in a May 4 research report says: "Hi-P reported bottomline of $17.9 million, from $14 million net loss last year. Excluding $0.8 million one-offs and $5.4 million higher depreciation of PPE due to the change in accounting estimate, core profit would be $24 million, above our $19 million projection.
"Sales of $243 million were 66% higher y-o-y - in line with our projection. Gross margin improved significantly to16.3% from 4.4% in 1Q10, benefiting from economies of scale, effective cost control and better product mix. Hi-P generated $47 million FCF in 1Q as cash cycle shortened to 41 days from 44 in 1Q10.
"As a result of our earnings forecast cut, target price is revised down to $1.28, still based on 11x FY2011 PE. However, upside has now narrowed to 9%. DOWNGRADE TO HOLD."
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