Hi-P up 13% on contract speculation

Shares of Singapore s Hi-P International surged as much as 12.8% on expectations of new business, although the contract manufacturer denied it had won a large order from U.S. computer giant Apple Inc, reported Reuters.

By 10:19 a.m., Hi-P was up 7.8% at $0.97 on volume of 3.1 million shares, 4.4 times the average volume traded in the past 30 days. The stock has surged about 46% this month.

 

Hi-P supplies electronic parts for companies including Apple Inc and Blackberry maker Research In Motion.

 

DMG & Partners Securities said in a report on Friday its checks showed Hi-P had secured a large order for its new metal casing business, which the broker believed was from Apple.

 

Hi-P, however, said on Monday DMG's statement was not accurate and that it was currently working on potential new metal casing and parts projects with some customers.

 

“The group has developed new customers and secured orders from existing and new customers for projects with different processes,” the company said.

 

Hi-P also said that its planned capital expenditure of around $100 million was for the acquisition of different machinery and equipment, as well as for the expansion of production facilities.

 

“The Hi-P announcement is quite vague and people may still believe that they have orders from Apple. They are spending so much to expand capacity, so some people expect them to have contracts,” said a local trader.