SGX:H17

Stock Analysis Report

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.

Snowflake

Fundamentals

Excellent balance sheet, good value and pays a dividend.

Risks

  • Hi-P International is covered by less than 3 analysts.

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


Market Performance


7 Day Return

6.0%

SGX:H17

3.0%

SG Electronic

1.7%

SG Market


1 Year Return

35.2%

SGX:H17

-0.2%

SG Electronic

-0.007%

SG Market

H17 outperformed the Electronic industry which returned -0.2% over the past year.

H17 outperformed the Market in Singapore which returned -0% over the past year.


Share holder returns

H17IndustryMarket
7 Day6.0%3.0%1.7%
30 Day6.0%5.5%2.0%
90 Day-10.2%-2.1%-1.2%
1 Year40.9%35.2%5.3%-0.2%4.1%-0.007%
3 Year248.9%176.4%79.4%54.7%18.4%5.7%
5 Year127.0%74.5%70.9%36.5%10.1%-8.1%

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

Valuation

Is Hi-P International undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

Hi-P International is good value based on earnings compared to the SG Electronic industry average.

Hi-P International is good value based on earnings compared to the Singapore market.


Price Based on Expected Growth

Hi-P International earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Hi-P International is overvalued based on assets compared to the SG Electronic industry average.


Next Steps

Future Growth

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

-0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Hi-P International's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).

Hi-P International's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Hi-P International's revenue growth is positive but not above the Singapore market average.

Hi-P International's earnings are expected to decrease over the next 1-3 years, this is below the Singapore market average.

Hi-P International's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Hi-P International is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

53.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Hi-P International has delivered over 20% year on year earnings growth in the past 5 years.

Hi-P International's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Hi-P International's 1-year earnings growth is negative, it can't be compared to the SG Electronic industry average.


Return on Equity

Hi-P International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Hi-P International used its assets more efficiently than the SG Electronic industry average last year based on Return on Assets.


Return on Capital Employed

Hi-P International has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is Hi-P International's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Hi-P International's level of debt (18.6%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (13.2% vs 18.6% today).

Debt is well covered by operating cash flow (214.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 52.7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 6.5x debt.


Next Steps

Dividend

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

2.89%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Hi-P International's pays a higher dividend yield than the bottom 25% of dividend payers in Singapore (2.53%).

Hi-P International's dividend is below the markets top 25% of dividend payers in Singapore (5.64%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (3.5x coverage).


Next Steps

Management

What is the CEO of Hi-P International's salary, the management and board of directors tenure and is there insider trading?

6.8yrs

Average management tenure


CEO

Hsiao Yao (79yo)

15.8yrs

Tenure

S$4,086,100

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

Hsiao's remuneration is higher than average for companies of similar size in Singapore.

Hsiao's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

6.8yrs

Average Tenure

71yo

Average Age

The average tenure for the Hi-P International management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

15.1yrs

Average Tenure

70yo

Average Age

The average tenure for the Hi-P International board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Tina Chan

    Company Secretary

    • Tenure: 3.8yrs
  • Samuel Yuen (59yo)

    Chief Financial Officer

    • Tenure: 13.3yrs
    • Compensation: S$507.00k
  • Hsiao Yao (79yo)

    Founder

    • Tenure: 15.8yrs
    • Compensation: S$4.09m
  • Huey Wong (70yo)

    Chief Administrative Officer & Executive Director

    • Tenure: 31.7yrs
    • Compensation: S$1.09m
  • Kam Choon Lee

    Vice President of Human Resources

    • Tenure: 0yrs
  • Wan Mei Chan

    Company Secretary

    • Tenure: 6.3yrs
  • Hsiao Kuang Yao (72yo)

    Director of Supply Chain Management

    • Tenure: 6.8yrs

Board Members

  • Chester Lin (79yo)

    Independent Director

    • Tenure: 15.1yrs
    • Compensation: S$79.00k
  • Tiong Yeo

    Non-Executive Director

    • Tenure: 32.4yrs
    • Compensation: S$544.48k
  • Hsiao Yao (79yo)

    Founder

    • Tenure: 15.8yrs
    • Compensation: S$4.09m
  • Huey Wong (70yo)

    Chief Administrative Officer & Executive Director

    • Tenure: 31.7yrs
    • Compensation: S$1.09m
  • Jennifer Yeo Leong (60yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: S$79.00k
  • Gerald Lim (61yo)

    Lead Independent Director

    • Tenure: 1.3yrs
    • Compensation: S$74.00k

Company Information

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


Key Information

  • Name: Hi-P International Limited
  • Ticker: H17
  • Exchange: SGX
  • Founded: 1980
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: S$989.163m
  • Shares outstanding: 804.20m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 12:43
End of Day Share Price2019/09/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.