HI-P

HI-P: We note of a rising trend in various brokers calling for a buy on Hi-P. Following OSMDMG’s Buy Call last week, Lim & Tan reiterated its BUY recommendation on Hi-P as house expect 2Q’13 profit to improve 50% qoq and turnaround from last year’s loss of $2m to $10.5m on the back of a revival in orders from Blackberry; and are expecting 2H13 profit to surge a further 124% hoh to close to $40mln as the company secures a new contract from Apple for their low cost iPhones which are made of plastic casing (which is the forte of Hi-P) as well as a new program launch from Blackberry for their new A10 smart-phone. Also understand that Motorola under their new parent company Google will be launching a new smart-phone called Moto X, and Hi-P will be involved in the new program as well; other customers providing stable orders include P&G, Nike and Amazon.