HI-P

HI-P: CIMB maintains U/p with $0.74 TP. House note that suspicion of a mismatch between Hi-P’s initial capacity expansion plans and its weak order visibility has been confirmed with its latest announcement, which house believe stemmed from lower visibility from its key customers. This confirmation of weak visibility in orders affirms our bearish view on the stock. House tweak numbers slightly and reduce projected capex and debt drawdown but make no changes to other assumptions. TP of $0.74, which is based on 1x FY13 P/BV, (slight discount to its historical average due to its weak outlook) remains unchanged.