DB:H8S

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Hi-P International

Executive Summary

Hi-P International Limited operates as an integrated contract manufacturer serving the wireless telecommunications, consumer electronics, computing and peripherals, Internet of Things, medical devices, and industrial devices markets in Singapore and internationally.


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.

Share Price & News

How has Hi-P International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: H8S's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

22.0%

H8S

1.4%

DE Electronic

0.7%

DE Market


1 Year Return

-9.0%

H8S

7.6%

DE Electronic

3.9%

DE Market

Return vs Industry: H8S underperformed the German Electronic industry which returned 7.6% over the past year.

Return vs Market: H8S underperformed the German Market which returned 3.9% over the past year.


Shareholder returns

H8SIndustryMarket
7 Day22.0%1.4%0.7%
30 Day22.9%8.2%5.3%
90 Day37.6%17.0%17.3%
1 Year-6.8%-9.0%10.1%7.6%6.2%3.9%
3 Yearn/a5.7%2.9%1.8%-6.2%
5 Yearn/a103.1%89.8%9.3%-5.4%

Price Volatility Vs. Market

How volatile is Hi-P International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Hi-P International undervalued compared to its fair value and its price relative to the market?

12.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: H8S (€0.81) is trading above our estimate of fair value (€0.22)

Significantly Below Fair Value: H8S is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: H8S is good value based on its PE Ratio (12.9x) compared to the DE Electronic industry average (24.8x).

PE vs Market: H8S is good value based on its PE Ratio (12.9x) compared to the German market (21x).


Price to Earnings Growth Ratio

PEG Ratio: H8S's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: H8S's PB Ratio (1.7x) is in line with the DE Electronic industry average.


Next Steps

Future Growth

How is Hi-P International forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: H8S's earnings are forecast to decline over the next 3 years (-0.3% per year).

Earnings vs Market: H8S's earnings are forecast to decline over the next 3 years (-0.3% per year).

High Growth Earnings: H8S's earnings are forecast to decline over the next 3 years.

Revenue vs Market: H8S's revenue (5.4% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: H8S's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: H8S's Return on Equity is forecast to be low in 3 years time (11.5%).


Next Steps

Past Performance

How has Hi-P International performed over the past 5 years?

43.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: H8S has high quality earnings.

Growing Profit Margin: H8S's current net profit margins (5.9%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: H8S's earnings have grown significantly by 43.4% per year over the past 5 years.

Accelerating Growth: H8S's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: H8S had negative earnings growth (-20.4%) over the past year, making it difficult to compare to the Electronic industry average (-30.3%).


Return on Equity

High ROE: H8S's Return on Equity (13.5%) is considered low.


Next Steps

Financial Health

How is Hi-P International's financial position?


Financial Position Analysis

Short Term Liabilities: H8S's short term assets (SGD865.0M) exceed its short term liabilities (SGD665.9M).

Long Term Liabilities: H8S's short term assets (SGD865.0M) exceed its long term liabilities (SGD31.3M).


Debt to Equity History and Analysis

Debt Level: H8S's debt to equity ratio (20.6%) is considered satisfactory.

Reducing Debt: H8S's debt to equity ratio has reduced from 34.4% to 20.6% over the past 5 years.

Debt Coverage: H8S's debt is well covered by operating cash flow (204.5%).

Interest Coverage: H8S's interest payments on its debt are well covered by EBIT (37.4x coverage).


Balance Sheet


Next Steps

Dividend

What is Hi-P International current dividend yield, its reliability and sustainability?

2.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: H8S's dividend (2.17%) is higher than the bottom 25% of dividend payers in the German market (1.24%).

High Dividend: H8S's dividend (2.17%) is low compared to the top 25% of dividend payers in the German market (3.82%).


Stability and Growth of Payments

Stable Dividend: H8S's dividend payments have been volatile in the past 10 years.

Growing Dividend: H8S's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28%), H8S's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: H8S's dividends in 3 years are forecast to be well covered by earnings (30% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.2yrs

Average management tenure


CEO

Hsiao Tung Yao (80yo)

16.67yrs

Tenure

S$1,415,000

Compensation

Mr. Hsiao Tung Yao founded Hi-P International Limited and has been its Chief Executive Officer since November 05, 2003. Mr. Yao is responsible for formulating the strategic directions of Hi-P International ...


CEO Compensation Analysis

Compensation vs Market: Hsiao Tung's total compensation ($USD1.02M) is about average for companies of similar size in the German market ($USD1.43M).

Compensation vs Earnings: Hsiao Tung's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Hsiao Tung Yao
Founder16.67yrsS$1.42m83.46% SGD552.1m
Huey Fang Wong
Chief Administrative Officer & Executive Director32.5yrsS$402.00k0.22% SGD1.4m
Chung Sang Yuen
Chief Financial Officer14.08yrsS$507.00kno data
Kam Choon Lee
Vice President of Human Resourcesno datano datano data
Yong Keong Tan
Executive Vice President0.33yrno data0.066% SGD434.5k
Hsiao-Tsu Liu
Chief Operating Officer of Greater China Business Unit0.25yrno datano data
Wan Mei Chan
Company Secretary7.17yrsno datano data
Lai Chan
Company Secretary4.67yrsno datano data
Hsiao Kuang Yao
Director of Supply Chain Management7.67yrsno datano data

7.2yrs

Average Tenure

72yo

Average Age

Experienced Management: H8S's management team is seasoned and experienced (7.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hsiao Tung Yao
Founder16.67yrsS$1.42m83.46% SGD552.1m
Huey Fang Wong
Chief Administrative Officer & Executive Director32.5yrsS$402.00k0.22% SGD1.4m
Chien Lin
Independent Director15.92yrsS$79.00k0.22% SGD1.5m
Kheong Chun Ho
Independent Non-Executive Director0.58yrno datano data
Tiong Eng Yeo
Non-Executive Director33.25yrsS$43.00k0.062% SGD409.8k
Lai Peng Leong
Independent Director13.67yrsS$79.00k0.037% SGD245.9k
Choke Meng Seow
Independent Non-Executive Director0.58yrno datano data
Thien Su Lim
Lead Independent Director2.17yrsS$87.00kno data

13.7yrs

Average Tenure

70yo

Average Age

Experienced Board: H8S's board of directors are seasoned and experienced ( 13.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hi-P International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hi-P International Limited
  • Ticker: H8S
  • Exchange: DB
  • Founded: 1980
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: S$1.041b
  • Listing Market Cap: S$661.458m
  • Shares outstanding: 806.96m
  • Website: https://www.hi-p.com

Location

  • Hi-P International Limited
  • 11 International Business Park
  • Jurong East
  • Singapore
  • 609926
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
H17SGX (Singapore Exchange)YesOrdinary SharesSGSGDDec 2003
H8SDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2003

Biography

Hi-P International Limited operates as an integrated contract manufacturer serving the wireless telecommunications, consumer electronics, computing and peripherals, Internet of Things, medical devices, and industrial devices markets in Singapore and internationally. The company operates in three segments: Precision Plastic Injection Molding; Mold Design and Fabrication; and Provision of Sub-Product Assembly and Full-Product Assembly Services. It offers molds and special tools; automated machinery and equipment; electrical appliances, automotive, and tele-communication related products; precision plastic products and its production equipment; plastic components; plastic product modules; robots and smart devices; mold bases and components; walkie talkie; razors and air-conditioner parts; and electric components and electronic communication equipment. The company also provides trays, mobile phones, digital cameras, and electric toothbrushes; in-mold decoration lenses, as well as related technology consultation and services; metal and non-metal stampings; precision stamped metal components and tools; and hand phone casing, computer keyboard, and its components. In addition, it offers spray painting, engineering support, factory building leasing and building management, and investment and management consulting services, as well as technical development service for electronic products. Further, the company sells aforementioned and water treatment products; assembles coffee machines and parts, as well as provides its maintenance and after-sales services; designs and fabricates dies; manufactures, wholesales, imports and exports, and sells automotive parts, automated and electronic equipmnet, electrical and telecommunication equipment, home appliances, and its components; and manufactures and repairs general purpose machinery and equipment. Additionally, it imports instant beverage products. The company was founded in 1980 and is headquartered in Singapore. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 21:43
End of Day Share Price2020/07/10 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.