Hi-P has run up to 79 cents now. The 2H is going to be the turnaround period after a not-unexpected lousy 1H. The SGD180m capex earmarked for 2012 will expand its production capacity and accelerate its automation program.
This amount is significant -- it is almost two times what it spent in FY11 and FY10 combined!
More business ahead, from none other than Apple.
There are also new business opportunities for wireless, computing & peripherals, home appliances, sports digital devices and personal grooming devices.
Apple is becoming a big customer of Hi-P but in the longer term I wonder if Apple's business will be as strong as currently. Apple is facing new competition from Google and others in the tablet market. And its next iPhone will really have to be a Great Product in the face of challenges from Samsung.
Instead of similar revenue as compared with the first quarter of FY2012 (â1Q2011â), the Group
expects to report a lower revenue in the second quarter of FY2012 (â1Q2012â) as compared with
1Q2012. This was mainly due to lower orders from existing customer in 2Q2012 than previously
expected. Revenue for 2Q2012 is higher as compared to 2Q2011 as previously guided.
The Group also expects to report a loss for 2Q2012 instead of a profit as previously guided. The
loss was mainly due to the lower revenue as well as provision of approximately S$2.2 million
made in connection with the cessation of business operations of our subsidiary in Mexico. If the
provision is not taken into consideration, the Group is expected to achieve break even
performance for 2Q2012 despite the lower than expected sales.
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