Hi-P gaps up 15.4% to $1.01 on opening, its highest level since Jul 07. Contract manufacturer's revised guidance for higher FY10 revenue, profit sitting well with investors with volume strongest in 6 weeks. Better outlook based on improved productivity, cost controls. Record earnings look within reach because key customers growth potential is currently suppressed by the lack of part supplies while global demand is still very strong.
DBS Vickers keeps Buy call but lifts target to $1.26 from $0.94 after increasing FY10-11 earnings estimates by 10-11%. Hi-P counts Blackberry maker Research In Motion & Apple as its key customers. Group reported 2Q10 net profit of $12.4m vs $14.2m loss in 1Q10. RIM’s positive 3Q guidance issued last week bodes well for Hi-P in coming quarters. Resistance will be at $1.07 high set in Jul 07.
No comments:
Post a Comment