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.
The last earnings update was 48 days ago.
Discounted Cash Flow Calculation for DB:H8S using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
DB:H8S DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Hi-P International's share price is below the future cash flow value, and at a moderate discount (> 20%).
Hi-P International's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Hi-P International's earnings available for a low price, and how does
this compare to other companies in the same industry?
Hi-P International's earnings are expected to grow by 1.8% yearly, however this is not considered high growth (20% yearly).
Hi-P International's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Hi-P International's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Hi-P International's finances.
The net worth of a company is the difference between its assets and liabilities.
Hi-P International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Hi-P International's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Hi-P International's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 6.5x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
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 Ltd. as well as overall management of its operations. He served as the Chief Executive Officer of Hi-P International Ltd., from November 5, 2003 to October 31, 2007 and also served its Managing Director of Consumer Electronics SBU from March 31, 2007 to April 24, 2007. He has more than 40 years of experience in the precision tooling and plastic injection molding industry. He served as a Technical Service Manager of Du Pont Singapore Electronics Pte Ltd. He serves as Executive Chairman of Hi-P International Limited and has been its Executive Director since May 21, 1983. He was conferred Honorary Doctorate by his Alma Mater, National Kaohsiung University of Applied Sciences, on 25 October 2009. Mr. Yao holds Diploma in Chemical Engineering from Taiwan Kaohsiung Technical College.
Hsiao's compensation has been consistent with company performance over the past year, both up more than 20%.
Hsiao's remuneration is about average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Hi-P International management team is over 5 years, this suggests they are a seasoned and experienced team.
Chief Administrative Officer & Executive Director
Chief Financial Officer
Kam Choon Lee
Vice President of Human Resources
Wan Mei Chan
Hsiao Kuang Yao
Director of Supply Chain Management
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Hi-P International board of directors is over 10 years, this suggests they are a seasoned and experienced board.
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. It manufactures and sells molds and special tools, housing appliance plastic components and equipment, and water treatment equipment; plastic components and plastic product modules; mold base and components; electric components and electronic communication equipment; in-mold decoration lenses; precision stamped metal components and precision tools; and metal and non-metal stampings, as well as provides spray painting, engineering support, maintenance, and technology consultation services. In addition, the company engages in the research and development, manufacture, wholesale, import and export, and sale of electronic telecommunication devices, electrical appliances, automotive parts, housing appliances, automated equipment, and related components. Further, it manufactures and sells trays, mobile phones, telecommunication products, digital cameras and related electronic products, and electric toothbrushes; assembles coffee machines and parts, as well as provides related maintenance and after-sales services; and offers investment and management consulting services. Additionally, the company engages in the design, manufacture, and sale of robots and smart devices; manufacture, SMT, assembly, and trading of flexible printed circuit boards and flexible rigid printed circuit boards; and assembly and provision of ancillary value-added services, primarily surface finishing services, as well as provision of die design and fabrication services. It has operations primarily in the People's Republic of China, Singapore, the Philippines, Malaysia, Taiwan, Thailand, Europe, the United States, the rest of Americas, and internationally. The company was founded in 1980 and is headquartered in Singapore.
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