Hi-P: A local broker is maintaining its Trading Buy call on Hi-P with a TP of $0.59, highlighting that the 64.9% acquisition stake of Yota Devices by Hong Kong based Rex Global Entertainment for US$100m, is a positive and increases the chances of a settlement of the arbitration case between Hi-P and Yota Devices.
The broker also expects Hi-P to benefit positively from the record sales of key client Apple’s iPhone 6S and 6s Plus, with 13m handsets sold just three days after its launch. Consensus estimates are for the tech giant to sell ~48.5m iPhones in the Sep quarter, which represents a 24% y/y increase.
Following the recent flow of events, the broker is more confident of a 2H15 turnaround and is lifting its FY15 earnings estimates by 13%.
At the current price, Hi-P trades at just 0.61x P/B.
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