Hi-P

Hi-P: (S$0.425) Smaller 1Q16 loss on improving FY16 outlook
- 1Q16 net loss narrowed, although revenue contracted 1.5%.
- Gross margin expanded on a favourable shift in product mix and cost efficiencies.
- Despite a seasonally slow period, operating cash inflow ballooned, used to reduce its borrowings.
- With an improved outlook and a earnings turnaround in FY16, the stock could be ripe for a change in fortunes.
- Trades at 0.67x P/B compared to its historical average of 0.96x.