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 average 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


Market Performance


7 Day Return

15.1%

H17

2.3%

SG Electronic

0.2%

SG Market


1 Year Return

64.1%

H17

2.8%

SG Electronic

1.4%

SG Market

Return vs Industry: H17 exceeded the SG Electronic industry which returned 2.8% over the past year.

Return vs Market: H17 exceeded the SG Market which returned 1.4% over the past year.


Shareholder returns

H17IndustryMarket
7 Day15.1%2.3%0.2%
30 Day14.2%-1.1%-2.6%
90 Day-4.2%1.7%-7.0%
1 Year71.0%64.1%8.4%2.8%5.5%1.4%
3 Year276.0%197.8%69.2%46.2%15.1%2.8%
5 Year182.9%117.5%73.6%38.8%10.9%-7.5%

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 compared to its fair value and its price relative to the market?

14.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: H17 (SGD1.37) is trading below our estimate of fair value (SGD1.6)

Significantly Undervalued: H17 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: H17 is good value based on its PE Ratio (10.6x) compared to the Electronic industry average (12x).

PE vs Market: H17 is good value based on its PE Ratio (10.6x) compared to the SG market (13.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: H17 is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: H17 is overvalued based on its PB Ratio (2x) compared to the SG Electronic industry average (0.8x).


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?

3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: H17's forecast earnings growth (3.1% per year) is above the savings rate (2.3%).

Earnings vs Market: H17's earnings (3.1% per year) are forecast to grow slower than the SG market (5.7% per year).

High Growth Earnings: H17's earnings are forecast to grow, but not significantly.

Revenue vs Market: H17's revenue (5.3% per year) is forecast to grow slower than the SG market (5.4% per year).

High Growth Revenue: H17's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: H17's Return on Equity is forecast to be low in 3 years time (14.3%).


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

Earnings Trend: H17 has become profitable over the past 5 years, growing earnings by 53.7% per year.

Accelerating Growth: H17's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: H17 had negative earnings growth (-13.9%) over the past year, making it difficult to compare to the Electronic industry average (1.2%).


Return on Equity

High ROE: H17's Return on Equity (18.7%) is considered low.


Return on Assets

ROA vs Industry: H17 has a higher Return on Assets than the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: H17's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Hi-P International's financial position?


Financial Position Analysis

Short Term Liabilities: H17's short term assets (SGD667.6M) exceeds its short term liabilities (SGD467.8M)

Long Term Liabilities: H17's short term assets (667.6M) exceeds its long term liabilities (28.3M)


Debt to Equity History and Analysis

Debt Level: H17's debt to equity ratio (18.6%) is considered satisfactory

Reducing Debt: H17's debt to equity ratio has increased from 13.2% to 18.6% over the past 5 years.

Debt Coverage: H17's debt is well covered by operating cash flow (214.6%).

Interest Coverage: H17's interest payments on its debt are well covered by EBIT (52.7x coverage).


Balance Sheet

Inventory Level: H17 has a high level of physical assets or inventory.

Debt Coverage by Assets: H17's debt is covered by short term assets (assets are 6.477020x debt).


Next Steps

Dividend

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

3.65%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%2.5%markettop25%5.6%industryaverage4.6%forecastin3Years2.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: H17's dividend (3.65%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: H17's dividend (3.65%) is low compared to the top 25% of dividend payers in the SG market (5.58%).

Stable Dividend: H17's dividend payments have been volatile in the past 10 years.

Growing Dividend: H17's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.7%), H17's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: H17's dividends in 3 years are forecast to be well covered by earnings (27% payout ratio).


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?

6.9yrs

Average management tenure


CEO

Hsiao Yao (79yo)

15.9yrs

Tenure

S$1,409,000

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's total compensation ($USD1.03M) is about average for companies of similar size in the SG market ($USD448.62K).

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


Management Age and Tenure

6.9yrs

Average Tenure

71yo

Average Age

Experienced Management: H17's management team is seasoned and experienced (6.9 years average tenure).


Board Age and Tenure

15.2yrs

Average Tenure

70yo

Average Age

Experienced Board: H17's board of directors are seasoned and experienced ( 15.2 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Tina Chan

    Company Secretary

    • Tenure: 3.9yrs
  • Samuel Yuen (59yo)

    Chief Financial Officer

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

    Founder

    • Tenure: 15.9yrs
    • Compensation: S$1.41m
  • Huey Wong (70yo)

    Chief Administrative Officer & Executive Director

    • Tenure: 31.8yrs
    • Compensation: S$391.00k
  • Kam Choon Lee

    Vice President of Human Resources

    • Tenure: 0yrs
  • Wan Mei Chan

    Company Secretary

    • Tenure: 6.4yrs
  • Hsiao Kuang Yao (72yo)

    Director of Supply Chain Management

    • Tenure: 6.9yrs

Board Members

  • Chester Lin (79yo)

    Independent Director

    • Tenure: 15.2yrs
    • Compensation: S$79.00k
  • Tiong Yeo

    Non-Executive Director

    • Tenure: 32.5yrs
    • Compensation: S$296.87k
  • Hsiao Yao (79yo)

    Founder

    • Tenure: 15.9yrs
    • Compensation: S$1.41m
  • Huey Wong (70yo)

    Chief Administrative Officer & Executive Director

    • Tenure: 31.8yrs
    • Compensation: S$391.00k
  • Jennifer Yeo Leong (60yo)

    Independent Director

    • Tenure: 12.9yrs
    • Compensation: S$79.00k
  • Gerald Lim (61yo)

    Lead Independent Director

    • Tenure: 1.4yrs
    • 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$1.062b
  • 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 Analysis2019/10/16 12:39
End of Day Share Price2019/10/16 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.