Thursday, October 31, 2013

Hi-P International: Cut In iPhone 5c Output To Hurt Profit (MDG)

Hi-P International: Cut In iPhone 5c Output To Hurt Profit
(NEUTRAL SGD0.69, TP: SGD0.67)

Hi-P released negative profit guidance last Friday, citing a drop in orders from one of its existing customers, which we believe may be Apple. Production orders for iPhone 5c have been cut following its disappointing debut. We slash our FY13 and FY14 estimates by 47% and 40% respectively. Maintain NEUTRAL, with our new SGD0.67 TP based on 0.95x FY13 P/BV (0.5 SD below five-year historical average).


Negative profit guidance. In its recent 2QFY13 results, Hi-P’s management guided for better 3QFY13 and 2HFY13 numbers a y-o-y and h-o-h basis respectively. However, it now expects the company’s 3QFY13 net profit to be similar to 3QFY12’s SGD3.0m, owing to an inventory provision of around SGD4.4m. It is also projecting its 2HFY13 net profit would be lower than that of 1HFY13.

Orders from Apple decline. Hi-P explained that the SGD4.4m inventory provision was due to a drop in orders from one of its existing customers, which we believe may be Apple. According to our channel checks in Taiwan, Apple has cut its year-end orders for iPhone 5c with contract manufacturers such as Hon Hai Precision Industry Co Ltd (2317, NR) and Pegatron Corp (4938, NR) in view of weaker-than-expected demand. As we had previously pointed out, since Hi-P is largely involved in the production of the iPhone 5c rather than 5s, the group’s performance will be significantly affected.

Slashing FY13 estimates. As such, we slash our FY13 and FY14 earnings estimates by 47% and 40% respectively. We believe the company needs to beef up efforts to diversify its customer base in order to mitigate the impact from volatility in the fast-changing consumer electronics industry.

Nevertheless, given the company’s low free float and strong net cash hoard of SGD84.4m, the stock’s valuation should still be supported by its NTA value of SGD0.71/share. Our new SGD0.67 TP is based on 0.95x FY13 P/BV, 0.5 SD below the stock’s five-year historical average.


Source/Extract/Excerpts/来源/转贴/摘录: DMG-Research,
Publish date: 29/10/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock