Shares of Singapore’s Hi-P International gained as much as 2.8% after the contract manufacturer said it plans to invest around $300 million for a project in China.
On Monday Hi-P shares rose as high as $0.93, the highest since Aug. 24. Some 1.1 million shares changed hands, 1.8 times the average full-day volume over the past 30 days.
Hi-P supplies parts to companies including Apple Inc and BlackBerry maker Research in Motion .
Hi-P said on Friday it will acquire land use rights at the Nantong Economic and Technological Development Area and build a new plant that is set to increase its production space by around 50%.
The plant will focus on producing electro-mechanical components, modules assembly and products for the electronics industry, Hi-P said.
“We believe Hi-P’s proposed $300 million China investment, announced last Friday, is linked to greater allocations from Apple and a testament to Hi-P’s ability to offer quality components at competitive prices,” CIMB Research said.
The project will boost Hi-P’s 2013-2014 fiscal year earnings and catalyse its stock price, CIMB said, raising its target price on Hi-P to $1.06 from S$0.96 and maintaining its ’outperform’ call.
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