Thursday, August 26, 2010

Hi-P (H17 SP)

A good friend of mine asked me to look at this firm, which I did and heres my thoughts.
I wont write full on this firm - read on for details.
  • Firm manufactures plastic moulds for electronic products
  • Firm has been uphill due to consistent share buybacks 
  • About 863 million shares out at $0.835 each = mkt cap S$720 million
  • Debt levels are low with S$200 m+ in cash (thats why buybacks)
  • Firm did not recover contrary to what they wrote. "recovery was 1Q to 2Q 2010, -ve to +ve
    • but look at 1Q 2010 vs 09 and 2Q 2010 vs 09, both down.
    • overall YTD is a loss vs a gain in 09
  • Firm seems to be bleeding sales while fixed costs (almost all cost) remains similar 
    • This is amidst dipping pricing (note the margins)
  • Conclusion?
    • Not something I want to go into - Don't understand the rally in it.



    sounds like a solid company.

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