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3 Companies That May Benefit from the New iPhone 6 and Apple Watch

Last week, Apple Inc.,showed the world its new iPhone 6 and iPhone 6 Plus. It also unveiled the Apple Watch, marking the firm’s first foray into wearable devices. Since Singapore will be one of the first countries to launch the iPhone 6 today, let’s take a brief look at three companies listed in Singapore that may benefit from the new products.

  1. Hi-P International Ltd (SGX: H17)

Hi-P is a leading supplier of electro-mechanical modules to the telecommunications, computing, automotive, and consumer electronics industries. The firm is headquartered in Singapore and has 14 manufacturing plants globally located across Singapore, China (present in five cities in the country), Thailand, and Poland. Its clients include major mobile device manufacturers such as Apple, BlackBerry, and Amazon.

For the first half that ended 30 June 2014, the global contract manufacturer saw its revenue slump 29.2% year-on-year to S$391.2 million while net loss was at S$15.3 million. In the previous year, it made a net profit of S$17.8 million. The revenue decline was due to lower sales volumes from two main customers. This decrease was partially offset by orders from new customers.

The company, which expects lower revenue but higher profits for the full year of 2014 as compared to the previous year, is trading at 90 times its 2013’s earnings.

  1. Epicentre Holdings Limited (SGX: 5MQ)

The firm is a retailer of Apple and Apple-related products. It was established in 2002 as the first Apple Premium Reseller in the region. Having a presence in both Singapore and Malaysia, it won the Singapore Promising Brand Award – Promising Brands for three consecutive years from 2009.

Epicentre released its results for full year ended 30 June 2014 at the end of August. Revenue for year was at $172.4 million, a decline of 3.3% year-on-year. This was mainly due to lower sales reported from Apple products as well as third party brand products. The decrease was slightly offset by a full year revenue recognition from its newly-opened store at JEM shopping mall. Net loss for the year came in at S$2.9 million as compared to a loss of S$3.5 million last year.

Shares at Epicentre is at S$0.168 at the time of writing, up 20% from yesterday’s close of S$0.14.

  1. Amtek Engineering Ltd (SGX: M1P)

Amtek is a global manufacturer of precision-engineered components. It has presence in many parts of the world, including Singapore, China, India, USA, and France. The firm also manufactures iPhone chargers and auto parts for Tesla Motors Inc.

Just like Epicentre, the firm announced its full year results ended 30 June 2014, at the end of last month. For the year, revenue increased 1% year-on-year to US$633.1 million, mainly attributable to positive contribution from certain industries. However, net profit slumped 35% to US$17.5 million. The decrease in profit was due to higher finance costs and one-off charges because of the acquisition of Interplex Group.

The firm is currently trading at 16 times its historical earnings.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.