CIMB Research downgraded Hi-P International Ltd to
'underperform' from 'neutral', citing the electronics component
supplier's weaker than expected third-quarter earnings outlook.
The broker cut its price target to S$0.70 from S$0.95. Hi-P
shares fell 7.7 percent to S$0.77, with 2.9 million shares
traded, 1.5 times the average full-day volume traded over the
past 30 sessions. The stock has risen 29 percent this year.
Hi-P supplies parts to companies, including Apple Inc
and BlackBerry maker Research in Motion Ltd.
"It seems the company's turnaround has been pushed back, and
we now believe that its prospects may not be as positive as we
had previously thought," CIMB said in a report after downgrading
Hi-P to neutral on Friday.
On Friday, Hi-P said the group expects to report lower
revenue and profit in the third quarter from a year earlier,
mainly due to lower orders resulting from delays in projects
startup from existing and new customers.
CIMB also reduced Hi-P's 2012-14 core EPS forecast further
by 44 percent to 78 percent.
"We were already expecting the supply constraints for the
iPhone 5 and weakness in other major customers to affect Hi-P;
however the magnitude of the fall in earnings appears to be much
larger than expected as Hi-P's announcement indicated that
projects from more than one customer was delayed."
(Reporting by Viparat Jantraprap in Bangkok; Editing by Anand