Hi-P revenue dipped 32.7% in Q3 as sales volume plunge

Net loss was came in at $4.5m.

Mainboard-listed contract manufacturer Hi-P International reported a 32.7% year-on-year plunge in revenue to $246m from $365m due to decreased sales volume from two big customers.

According to OSK DMG, lower sales from these customers, which are suspected to be Blackberry and Motorola, did not stop Hi-P from recording a 243.2% surge in net profit after tax in Q3.

Hi-P also reported a net loss of $4.5m in Q3, significantly less than the $15.3m net loss it reported in the same period last year.

“With management guidance in line and its strong 3Q14 performance, we believe that a 2H14 turnaround is firmly in place and reinstate our bullish stance on a record 4Q14. We lower our FY14F revenue by 3.5% to SGD1.14bn but maintain our FY14 NPAT estimate of SGD12.3m. This is because we are expecting further shifts in product mix from plastic to metal components, driven by the ramp up of Xiaomi’s metal casing as well as other new projects,” stated OSK DMG.