Hi-P International

[phandal]

Just started researching this counter. Apparently some analysts are upbeat about the future earnings.

http://www.remisiers.org/cms_images/rese...tional.pdf

Can someone explain to me what "production yield" referes to? I thought CNC should be 99+% yield? Even metal stamping also better yield correct?

[CityFarmer]

Wow! Smartphones deliveries worth US$126 million? I reckon it must be dragged for a while, while production continue...

The figure must be right, because some number was announced in SGX
http://infopub.sgx.com/FileOpen/Hi-P_Arb...eID=366482

Hi-P takes Yota to court over refusal to take delivery of smartphones

SINGAPORE (Aug 21): Hi-P International ( Financial Dashboard)'s wholly-owned subsidiary, Hi-P Electronics has started arbitration proceedings against Yota Devices to claim a sum of US$126 million ($27.7 million).

The claim involves an agreement between Russian-based Yota and Hi-P Electronics to develop, manufacture and supply the Yotaphone 2 dual-screen smartphone.

Among others, Yota is alleged to have breached its agreement with Hi-P Electronics by failing to take delivery of and make payment for the full minimum order quantity of Yotaphone 2.

Hi-P Electronics says it intends to pursue the claim and seek the release the sum of US$15 million held in an escrow account.

As for the financial impact of the dispute on the group’s financial statements for the financial year ended Dec 31, Hi-P International says that will depend on the outcome of the claim, including the sale of the finished goods.

Hi-P International closed 1.3% lower at 39 cents.
http://www.theedgemarkets.com/sg/article...martphones

[HitandRun]

Not all manufacturers are having a whale of a time. A timely reminder that manufacturing remains a very tough business.

Aggressive expansion => high capex => huge working capital (whether in AR or inventory) => no cashflow left to distribute to shareholders. 

[kelvesy]

Interesting how they have so many exception items however their cash flow is strong.

I wonder whether they are depreciating their assets aggressively?

http://infopub.sgx.com/FileOpen/Hi-P_Pro...eID=448514 (The Group expects to be profitable in 1Q2017, instead of breakeven as previously guided, mainly due to improvement in operational efficiency and cost management.)

Seems like something is improving and their utilisation is up in 1Q.

[Value Explorer81]

Anyone looking at Hi P International? It is run by a very capable man with years of experience, Mr Yao Hsiao Tung.

https://nextinsight.net/index.php/story-...-fit-at-69

Mr Yao took over the company when it was not doing well and turn it around into a company that is doing over a billion in revenue today. 

The stock reached a high of $1 and saw its stock coming down by about 10% closing at about $0.90 to $0.91 today. It is probably due to the tech sell off in US. What is interesting was the announcement made today after the market closed.
Mr Yao bought back shares from one of their long time investor Molex International. The transaction was $174.6 million paid for 178.2 million shares from Molex International making Mr Yao the largest and most substantial shareholder. If we do the math, S$174,671,299.60 / 178,236,020 shares = $0.98. 

With current market price of $0.90/$0.91 and given the fact that Mr Yao just spent over $174million to buy shares from Molex International at $0.98 per share could it mean that the shares are still undervalued?

Also with 1Q 17 results, Mr Yao expected a breakeven like how it has been for the past few years but 1Q 17 results came up with a $8.4mil in profit after tax with a 100% increase in gross margins.

http://infopub.sgx.com/FileOpen/Hi-P_Pro...eID=448514
http://infopub.sgx.com/FileOpen/Hi-P_1Q2...eID=452070

I also realised that on the 17, 19 of May and 08 June 2017 USD 45mil was injected into one of their subsidiaries HI-P (SUZHOU) ELECTRONICS TECHNOLOGY CO., LTD. Could it mean that more orders are to be expected?

http://infopub.sgx.com/FileOpen/Hi-P_Inc...eID=454276
http://infopub.sgx.com/FileOpen/Hi-P_Inc...eID=454620
http://infopub.sgx.com/FileOpen/Hi-P_Inc...eID=457128

Im excited to see 2Q 17 results. i am pretty sure it will be great!

[Big Toe]

It is a decent, well run company but did not make any significant progress in their business after listing.
Still very much a sub contractor with the capability to handle assemblies/process different materials.
Problem is there are too many companies with the same capabilities.
They still rely on operational efficiency and cost management to turn in a small profit.

Their long time backer, Molex has far more resilient businesses(as well as tyco, another connector maker, essential components found in everything from smart phones to automobiles to power generation to home appliance).

[kelvesy]

At $0.57 or so, if you look at its free cash flow generated, HI-P was really a steal back then. This was further demonstrated by the aggressive share buy-backs. In 2H, their production is going to be ramped up because of new programmes.

[kelvesy]

Hi-P http://infopub.sgx.com/FileOpen/Hi-P_2Q2...eID=465350

19 cts dividends, congrats to shareholders.

[cyclone]

How a 77-Year-Old Singapore CEO Fixed a S$100 Million Blunder

By Livia Yap
December 20, 2017, 12:00 AM GMT+8 Updated on December 20, 2017, 11:01 AM GMT+8

In 2015, Yao Hsiao Tung was 75 and looking to slow down. He’d begun seeking his successor as chief executive officer of Hi-P International Ltd., a contract manufacturer for customers including Apple Inc. and Amazon.com Inc. But an annual loss, and the $126 million claim that Hi-P filed because of it, ended that plan.

The self-professed troubleshooter attributes the company’s first red ink since listing on Singapore’s stock exchange mostly to one big error that he oversaw. Its electronics unit took on a contract to co-design and produce a dual-screen smartphone for Yota Devices Ltd. without doing enough due diligence. The Moscow-based firm didn’t take delivery of the phones, according to Yao. Yota couldn’t be reached for comment.

Two years -- and, according to Hi-P, about S$100 million ($74 million) in losses -- later, the company is heading for its largest annual profit on record, helped by its work for Apple. Its shares have more than tripled in 2017, which is by far the biggest gain on the FTSE Straits Times All Share Index.

More details in https://www.bloomberg.com/news/articles/...orst-error

[cyclone]

Hi-P chairman Yao and wife Wong offers $2 per share to privatise company

By The Edge Singapore
Published on Fri, Dec 18, 2020 / 9:00 AM GMT+8

Yao Hsiao Tung, chairman of Hi-P International, and his wife Wong Huey Fang, are offering to take the company private with an offer of $2 per share.

The couple, who already hold 83.5% of the company, do not intend to revise the offer. 

The offer is being made, amid uncertainties of market volatility caused by the pandemic, so that minority shareholders have an “clean cash exit opportunity” at a “significant premium” of what the shares are now trading at.

At $2, it is 160.1% over the net asset value of the company as at June 30; it is also a 13.6% above the last traded price of $1.76 on Dec 14, before trading of Hi-P shares were halted.

More details in https://www.theedgesingapore.com/news/co...se-company

See also :
1. https://links.sgx.com/1.0.0/corporate-an...cement.pdf
2. https://links.sgx.com/1.0.0/corporate-an...cement.pdf