Stock Name: Hi-P
Company Name: HI-P INTERNATIONAL LIMITED
DBS Vickers Securities in an Oct 24 research report says: "Hi-P warns that net profit in 3Q11 would be lower than 2Q11, compared to previous guidance of q-o-q growth. Despite the likelihood of higher volume in 4Q11, the rebound is insufficient to offset YTD earnings decline.
"We therefore cut FY2011/2012F estimates by 11.7% and 2.6%. Although Hi-P's stock price has fallen in excess of 50% from its peak in Feb this year, valuation is not exactly compelling at < -1SD PE on FY12 earnings whereas the barometer STI has corrected close to -1.5SD FY12 PE.
"In view of still uncertain outlook, Hi-P's share price may not have fully priced in all earnings risks. Target price of 44 cents based on 5.5x FY12 PE (-1SD). MAINTAIN FULLY VALUED."
Company Name: HI-P INTERNATIONAL LIMITED
| Research House: DBS Vickers | Price Call: SELL | Target Price: 0.44 |
DBS Vickers Securities in an Oct 24 research report says: "Hi-P warns that net profit in 3Q11 would be lower than 2Q11, compared to previous guidance of q-o-q growth. Despite the likelihood of higher volume in 4Q11, the rebound is insufficient to offset YTD earnings decline.
"We therefore cut FY2011/2012F estimates by 11.7% and 2.6%. Although Hi-P's stock price has fallen in excess of 50% from its peak in Feb this year, valuation is not exactly compelling at < -1SD PE on FY12 earnings whereas the barometer STI has corrected close to -1.5SD FY12 PE.
"In view of still uncertain outlook, Hi-P's share price may not have fully priced in all earnings risks. Target price of 44 cents based on 5.5x FY12 PE (-1SD). MAINTAIN FULLY VALUED."
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