DBS Vickers downgraded Hi-P International to ‘hold’ from ‘buy’, as it lowered its net profit estimates for the second half and said it expects the elecronics component supplier to see further downgrades to consensus estimates.
By 12:03 p.m., Hi-P shares were down 0.5% at $0.93 and have jumped 53.7% so far this year, compared to a 23.6% rise in the FTSE ST Industrials Index.
Due to lower shipments, DBS said Hi-P’s second half ramp-up may not be as strong as previously expected, and now estimates the company’s second half net profit to be $45 million, compared to its previous forecast of $52 million.
Hi-P is likely to benefit from strong demand for its customer Apple’s new product iPhone 5, but supply constraints of components such as in-cell touch panels and casings is likely to cap further rise in Hi-P’s shares in the near term, DBS said.
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