Hi-P

Smartphone casings / Hi-P: Deutsche is positive on the Asian metal casings sector given, i) the design trend for thinner, lighter mobile devices and with larger screens, and ii) Apple's preference (86% adoption rate) for using metal casings for the iPhone, iPad and Macbook, and iii) a rising adoption rate from non-Apple brands, and iv) higher entry barriers in casing manufacturing and surface treatment. The house is less concerned about the over-supple risk within three years, , and believes the better product diversification and low growth base will help boost revenue, margins and EPS momentum for Taiwan and HK players like Catcher, Casetek , Ju Teng and Tongda. In S'pore, Hi-P is a key beneficiary of such trends.