Hi-P

Hi-P: 3Q2010 revenue up 57.3% qoq to S$285.5m and net profit up 167.7% to S$33.2m. Compared to 3Q09, revenue increased by 80.9% to S$613.9m and profit up 188.5% to S$64.6m. This increase was attributed to economies of scale, improved productivity, product mix and effective cost control…

Net profit margin increased from 6.8% in 2Q10 to 11.6%. Revenue for 4Q2010 is expected to be comparable to 3Q2010, with new projects in pipeline.EPS is at 3.83 in Sing cents…

P/E is currently 26.3x from Bloomberg. The historical avg P/E is approx 14.3x and forward estimates put P/E at around 16x. 3Q results if replicated in 4Q will justify the high valuation.