Goodbye, gloomy days: Hi-P’s utility rate stands at 50% from just 15% in 1Q

It’s ready to ride the Xiaomi Wave.

Production yield rate for producing Xiaomi’s metal casing has risen to >60%, above the breakeven point of 50%, signifying a stellar 2015 for the company.

According to a report by OSK-DMG, profits will start flowing in from the production of Xiaomi’s metal casings from end-2014, with full positive impact to be felt in 2015.

OSK-DMG adds that after the Yotaphone 2’s global launch kicked off in London on 3 Dec, the product will next be introduced to the European markets before it is brought to China and South-East Asia in 1Q15. As Hi-P is an original design manufacturer for the phone, it would stand to benefit from the ramping up in production of this potentially revolutionary phone.

Here’s more from OSK-DMG:

With a robust pipeline of projects – which include the ramping up in production of Xiaomi devices (the world’s third largest mobile phone maker), the worldwide launch of Yotaphone 2, its manufacturing of LeTV parts – we believe Hi-P is set to record a solid turnaround in 2H14, and reiterate our bullishness over a record 4Q14F.

Its new Nantong factory is set to accommodate the shift in its product mix from plastic to metal components. Analysts also believe that the gloomy days for Hi-P, which were largely due to Motorola and Blackberry, are over. In addition, Apple remains one of its largest key customers and is likely to remain so going forward – as Hi-P is in charge of making a few components for its iPhones and tablets.