HI-P

HI-P: Huge Capex plans could be linked to Apple, according to analysts. DMG note that channel checks with Apple’s supply chain reveals that Hi-P is poised to benefit tremendously from Apple’s future production ramp. As part of Apple’s ongoing efforts to diversify its supplier base, believe that Apple has chosen Hi-P to be a key component supplier along its supply chain and is likely to provide Hi-P with substantial orders for its upcoming product launches. CIMB believe that this large investment can only be induced by Apple. Hi-P has over the recent few years made significant inroads into the Apple supply chain with the quality of its products, and believe this has resulted in Apple increasing its allocation to Hi-P at the expense of its competitors. Expect to see contributions from this project to come in during 2H13.