Hi-P

Hi-P: Hi-P continues to benefit from the recovery posted by its customers. Both reported and core net profit were better yoy and Hi-P is optimistic about its second-half outlook, backed by new product launches and the positive industry outlook. Catalysts are successful new product launches by customers and continued earnings momentum. Hi-P hopes to benefit from new product launches by Apple (low-priced iPhone, new iPad and iPad mini), the A10 smartphone by Blackberry and the Moto X by Motorola. Customer Amazon will be releasing a new Kindle model. CIMB also expect contributions from P&G and Nike. Given the better visibility, CIMB raise sales forecast for FY13-FY15 by an average of 7.6%, leading to net profit over FY13-15 increasing by an average of 7.3%. Hi-P offers investors the growth opportunities offered by the smartphone/tablet market. CIMB has an OUTPERFORM rating with TP of $0.96 based on 14x P/E (3-year average).