Highlights

• Lower revenue yoy in 4Q14 guided in latest issued profit guidance, in contrast to earlier guidance. Profitable 4Q14 guidance maintained.
• Continue to hold positive view of stronger performance in FY15F.
• Maintain Buy with target price of S$0.88.

What is the news?

Hi-P International guided for lower revenue in 4Q14 as compared to 4Q13, citing lower demand from certain customers and lower than expected yields on some new products during its production ramp-up. The company continues to guide for profitable 4Q14.

How do we view this?

We adjust our estimates in line with the latest profit guidance. We continue our view of stronger performance in FY15F onwards on positive smartphone outlook and better production yields.

Investment Actions

We maintain a BUY rating on stronger performance in FY15F ahead with a target price at S$0.88.

Source: Phillip Securities Research - 2 Feb 2015