DMG says Hi-P is top pick for tech sector

Stock Name: Hi-P
Company Name: HI-P INTERNATIONAL LIMITED

Research House: DMG

Price Call: BUY

Target Price: 1.28

DMG & Partners Securities said it continues to favour Hi-P International, which supplies parts to companies such as Apple Inc, as the top pick in the Singapore technology sector.

On Tuesday, Hi-P shares were up 0.5% at $1.065. The stock has surged 76% so far this year versus the 23% gain in the FT ST Small Cap Index.

Apple booked orders for over two million iPhone 5 models in the first 24 hours, reflecting a higher-than-expected demand for the consumer device giant’s new smartphone and setting it up for a strong holiday quarter.

“Despite some criticism over the lack of the ‘wow’ factors, we remain bullish over the demand for iPhone 5 as we have consistently argued that, rather than competing purely on hardware specifications, Apple focuses on providing a better and holistic user experience,” DMG said.

The broker has a ’buy’ rating and $1.28 target price on Hi-P.