Singapore Stock Market News

Hi-P International - Fall From Grace

StockFanatic
Publish date: Mon, 11 May 2015, 01:39 PM
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1Q15 disappointed with a NPAT loss of SGD13.8m due to startup, higher depreciation and labour costs from the Nantong plant. We downgrade it to SELL (from Neutral), with a SGD0.43 TP based on 0.6x FY15 P/BV (25% downside), 5-year mid-point average due to uncertainties, another potential loss-making 2Q15 and sky-high valuations. Hi-P is also pessimistic about the Xiaomi project as reduced prices saw margins slashed despite reaching its targeted production yields.
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