Analysts William Tng and Darren Ong noted its net cash balance sheet was at $197 million as at end June 2020, and Hi-P is also exploring inorganic growth opportunities to reduce its customer concentration risk and expand the company.
CGS-CIMB has initiated a “hold” rating and target price of $1.23 for Hi-P International, believing its strong balance sheet will support mergers and acquisitions (M&A) that could drive growth for the group.
The group provides one-stop solutions to customers in wireless telecommunications, consumer electronics, computing and peripherals, Internet of Things (IoT), medical devices and industrial devices. Hi-P’s capabilities range from product development and design to parts manufacturing to complete product assembly.
