Hi-P International cut to "neutral", target cut to 72 cents by OSK DMG

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

Research House: OSK-DMG

Price Call: HOLD

Target Price: 0.72

SINGAPORE (Feb 17): OSK DMG has downgraded Hi-P International to "neutral" from "buy" and cut its price target to 72 cents, pegged at parity to FY2015 book value, from 87 cents.

While the contract manufacturer's 2014 earnings rose 63.5% to $10.5 million, the improvement was largely due to one-off items, such as insurance claims, OSK DMG analysts Jarick Seet and Terence Wong said in a report, noting that its net profit would be only $1.4 million without these exceptional items.