Hi-P

Hi-P: Shares fell as much as 16% in the first 3 wks of Oct during the mkt rout, but has since recouped most of its losses, mirroring the macro rebound. The Edge says the counter may yet rise even more in the days ahead, if the contract electronics manufacturer meets its forecast for a stronger bottom line for 3Q14. HQ in Singapore, Hi-P makes components used in handsets and other mobile devices. Results are due 4 Nov. It has forecast in Aug that its 3Q14 profit would exceeds the $3.1m made a year earlier. It said it would also end the year with a profit bigger than the $6.4m for the whole of 2013. For 4Q14, contributions from its newly completed plant in China's Nantong City could make a difference. The facility was completed in Sep and production is supposed to begin this quarter. Hi-P should have no issue funding operations in the near term given that it is in a net cash position. Two months ago, StanChart even doubled its credit line for Hi-P to US$100m.