Hi-P: UOB maintains Buy, but reduces TP to $1.64 from $1.49. Note that supply chain not affected by Jap earthquake in Japan. According to management, Hi-P is in the midst of negotiating a price reduction with suppliers of plastic resins. Grp currently holds 40-45 days of raw material inventory and targets to reduce the number down to 35 inventory days over the long term…..
Note however that updated forecast from customers after the earthquake in Jap indicates a slight moderation compared to previous bullish projections, which could be due to political uncertainties MENA, higher crude oil prices and lingering concerns over the availability of components. Add that stock still offers an upside of more than 25% to house TP.
No comments:
Post a Comment