Brokers' take

Hi-P International | Buy Oct 3 close: S$1.435 Target price: S$1.67 DBS Group Research, Oct 3

RIDING on the growth trajectory in the smartphone and IoT markets, Hi-P is in a sweet spot now as more than half of its earnings are derived from the Wireless (smartphone) and Computer Peripherals (IoT segment, eg, smart home) segments, which are expected to continue to do well in the next one to two years. The strong earnings momentum since H2 2016, on the back of operational efficiency, new customers and new product launches, further reinforces our conviction.

We are the only broker covering Hi-P. We believe the market under-appreciates the potential of the capacity ramp-up and Hi-P's strong cash-generating capabilities. The strong results in H1 2017, which is traditionally a much weaker period compared to H2, should help to allay the market's scepticism on Hi-P.