Hi-P to widen customer base and products, expand out of China to boost profit margin

Sinagpore

CONTRACT manufacturer Hi-P International on Friday said it will look to diversify its customer base, widen its product mix and further expand out of China to mitigate the impact from current macro headwinds. This comes as the group's declining gross profit margin over the last few years amid price pressure and competition have sparked concerns among shareholders.

Hi-P's gross profit margin was at 16.3 per cent in FY2017. It slipped to 14.6 per cent in FY2018 and declined further to 13.7 per cent in FY2019.