Hi-P has tumbled 42% since the high of $0.790 on 29 Jan 2015 to close $0.460 today. This underperformance is even more appalling if we compare it against the 7.1% drop in FTSE ST All Share Index over the same period. What has happened to Hi-P and whether this stock will continue to languish in the doldrums?
4QFY14 and 1QFY15 results have disappointed the market
Hi-P’s results in the previous two quarters, namely 4QFY14 and 1QFY15 have disappointed the market. After the release of 4QFY14 results, both DMG and UOB Kayhian have reduced their target prices from $0.870 and $0.850 to $0.720 and $0.730 respectively.
After its 1QFY15 results which reported a US$13.8m loss and disappointing outcome from Xiaomi project, DMG shaved the target price lower to S$0.430. UOB maintained the target around $0.730.
2QFY15F and more importantly 2HFY15F is ...
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