Tuesday, February 22, 2011


Hi-P: Announced 4Q10 and FY10 result, which was slightly ahead of consensus. FY10 Rev of $957.7m, +27.7%YoY, while Net Profit at $66.9m, +25.8%YoY and +7% ahead of average consensus. Increase comes on the back of a record 4Q10, which saw Grp generate a $35.9m in net profit, +762.1% YoY ….

Grp’s FY10 rev benefitted from a ramp up of new projects in 2H10 and grew 27.7%YoY to $957.7m. With economies of scale, improved productivity, product mix and overall effective cost control. Effective tax rate however increased from 17.1% to 24.2mainly due to higher income tax rates for our PRC subsidiaries…..

Going forward, grp expects significantly higher rev and profit in 1Q11 as compared to 1Q10 but lower rev and profit as compared to 4Q10 due to seasonality factors. Management has guidance for FY11 to register higher revenue and profit vs FY10….

Balance sheet remains strong, with grp having a net cash position of $211m. At current levels, grp trades at a 14.2x FY10 PE, on an ex cash basis, grp trades at 11.3x PE vs peers average and historical average of 14x.

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