HI-P

HI-P: DBSV downgrade to Hold with $1.06 TP. House note that Hi-P is still in recovery mode in 2H12, but by a smaller estimated net profit of $45m vs $52m previously. iPhone demand is strong but 4Q would be capped by parts shortage in the supply chain. Add that technically, any technical rebound (considering its recent decline from $1.10 to $0.93) should be capped at $0.99 near-term resistance at best. At worst, a gradual downward drift to $0.85-0.89 before correction ends.