Thursday, February 5, 2015

Hi-P benefit from Xiaomi Phone sales?

Technical view on ART system
On the above Hi-P Chart, we saw that using ART bottom master system, most of the Bottom master Signal picks at the right point, this actually shows that the market is responding to the price fall, Every time Hi-P stock drop too much, someone is picking it up and cause the reversal. Thou today the signal is not out yet, the chart already tell me how I should trade this stock. Basically, buy when it drop and form a reversal and place a stoploss below the low.

Below are some highlights on Hi-P from Phillip research report

Investment Merits

  •  Strong sales of Xiaomi phones would lead to significant boost to revenue.
  •  New Nantong plant will improve cost structure and expand production capacity.
  •  New dual-screen YotaPhone 2 offers potential sales boom.

Risk Factors

  •  High FX volatility among USD, RMB and SGD may result in significant impact, given its high net transactional currency exposure.
  • Business operates in highly competitive and volatile industries.
  • Sales heavily reliant on key major customers.

Riding on Xiaomi’s growth wave
Xiaomi adopted a metal frame for its Mi4 phone, unlike its predecessor models which
were built with plastic frames. Hi-P International is one of the 2 suppliers (the other
being Foxconn) engaged to make stainless steel casing for Xiaomi phones. The
success of Mi4 has led to Xiaomi becoming the world’s 3rd top selling phone maker
after Samsung and Apple.

This is just part of the report, You can email me for the full report