Analysts have conflicting views on Hi-P with competition expected to increase in near-term

SINGAPORE (May 6): Analysts seem to have a conflicting outlook on Hi-P International, following the group’s latest results announcement.

The group on May 2 posted a 5.7% y-o-y increase in its 1Q19 earnings to $10.7 million, compared to $10.1 million in 1Q18, due to a 70% reduction in foreign exchange losses.

This came on the back of a 2% increase in revenue to $286.8 million from $281.1 million last year, while gross profit margin declined to 12.6% in 1Q19 from 13.4% in 1Q18. This was mainly due to price pressure and a change in product mix with more lower margin high component content assembly products.

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