Hi-P rated buy by DBS with $0.94 price target. RIM 2Q results beat expectations on continued strong demand for Blackberry devices & 3Q guidance is also well above consensus driven by the rollout of Blackberry Torch in Aug. RIM accounts for 30-35% of Hi-P sales, and together with Apple forms the 2 biggest customers of Hi-P.
Strong revenue outlook from clients could see increasing demand for Hi-P’s products & services, namely in precision tooling & plastic molding of handsets & electronic accessories. The co is trading at FY10 P/E of 14.8X. Stock has pulled back to $0.87 level after hitting a year high of $0.92 but uptrend is largely intact as long as $0.865 support prevails.
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