3Q09 revenue and profit are expected to fall both QoQ and YoY, based on forecasts given by customers. The decline is likely a result of lower volume (timing of delivery, weak demand) and lower ASP.

Mass production for new products (notebooks, netbooks, mp3, razors) is expected to start in 4Q09. As such, utilization rate and revenue are likely to improve.

Management does not expect recovery to come quickly. Despite good cost control, Hi-P warns that the group performance still depends on market conditions.


Signed 2 S&P Agreements to acquire entire equity interest in Jiamao (RMB129.5m), and assets and business of Jiatong (RMB70.0m). Both companies are involved in the manufacture of FPCB and FRPCB.

Rationale: In line with Hi-P's integrated electro-mechanics strategy, and cost and effective solution to address customer demand in wireless market.

Startup costs are expected in upcoming quarters. Speed to breakeven again depends on market conditions.

FY09 capex excluding acquisition consideration is expected around S$20-25m (S$12.6m utilized thus far).
According to Bloomberg, there are 4 BUYs, 1 HOLD and 1 SELL on the stock. Consensus fair value is at $0.79 (Upside potential of 19.7%).