Hi-P is up 4% at $0.78 -- its intraday high -- despite reporting a 3Q12 net profit of $3 million, down 53.8% on-year, but swinging from a 2Q12 loss; the decline may be well-expected after its profit warning.
“It’s priced in,” says Edison Chen, an analyst at OSK Research. “The chairman has reiterated that he’s still optimistic,” he adds. “All the pushbacks and delays are now being executed in the fourth quarter. They are seeing it coming next year as well. The situation has improved.”
But he adds, Hi-P needs to quickly integrate to provide final assembly for their customers, noting Hi-P’s orders were pushed back as Apple assembler Foxconn didn’t produce enough.
“It’s better to take a cautious stance,” on the stock, he says. “They do see the orders coming, but of course there’s risk,” he says. “Even Apple demand is not as certain due to the intensive competition.”
The stock remains down more than 8% since its Oct 19 post-market profit warning, and it is down nearly 29% since its mid-September peak.
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