Skyworth Digital 0751

[winston]

HK-listed Skyworth projects over 200 pct growth in FY net profit; shares surge

HONG KONG (XFN-ASIA) - Skyworth Digital Holdings Ltd, a mainland-based appliance maker, said its net profit for the year ended March 2008 may have risen by over 200 pct from the previous fiscal year.

Stripping out a non-recurring gain from disposal of a 28 pct stake in its set-top box business, net profit for the year ended March is estimated to have increased by over 150 pct, it said.

The company posted a net profit of 128 mln hkd for the year ended March 2007.

Skyworth said its television and set-top box business units in China recorded their best ever yearly results during the year, more than offsetting the losses from the group's mobile phone, overseas television and small appliance business units.

At 10:27 am, shares of Skyworth were trading up 0.09 hkd or 12.50 pct at 0.81. (1 usd = 7.8 hkd)

[winston]

Not vested.

DJ MARKET TALK: CICC Starts Skyworth At Buy, Target HK$11

1122 [Dow Jones] STOCK CALL: CICC starts Skyworth (0751.HK) at Buy with target price of HK$11.00. Says company is one of China's top TV manufactures, ranking No.1 in China's LCD TV market and No.2 overall in market share.

Adds, house expects company to keep its No.1 market share in LCD market. Tip EPS at HK$0.47 for FY09/10, HK$0.61 at HK$0.61 for FY10/11. Notes risks include fluctuations in panel prices; irrational price competition.

Source: Dow Jones Newswire

[winston]

Not vested. The product is not too bad. Better than my expectation ..

Program keeps TV maker turned on

In December 2008, Beijing launched a program to subsidize the purchase of home appliances in the countryside.

Rural households benefited from the move which was aimed at stimulating local consumption.

Those buying television sets, refrigerators, mobile phones and washing machines could get a subsidy worth 13 percent of the purchase price.

The upper limit for refrigerators was 2,500 yuan (HK$2,839) and for TVs 2,000 yuan.

Fifteen TV models qualified for the program in the preliminary stage, boosting flat-panel TV sales.

The possible extension of the subsidy program could benefit Skyworth (0751), the mainland's leading TV seller. The firm can fully exploit its well- established distribution and after-sales service network in the rural areas. The subsidies and growing demand for entertainment have led to a sharp rise in the number of TV sets sold in the mainland. Higher-end sets accounted for almost 40 percent of TVs sold.

Skyworth's share price has soared from its 2008 low of 28 HK cents, reaching a peak of HK$8.39 in December.

It closed at HK$7.78 yesterday. The stock is worth accumulating at around HK$7.30 on the hopes that Skyworth will reap the benefits of the rural subsidy policy over the next three years.

BOC international set a target price of HK$10.60.

http://www.thestandard.com.hk/news_deta ... 00108&fc=8

[winston]

Not vested. From Phillips:-


Risks
The growth of GDP can`t reach expectations.
Consume confidence drops unexpectedly.
R&D of new products fall short of expectations
Foreign rivals bring more competitions.


Undervalued and rate BUY

After the period of slow growth caused by the consummation of TV popularization in China family, the transformation from CRT to LCD is expected to stimulate a new round of rapid growth in China TV markets.

We keep optimistic about the huge consumption potential brought by quickened urbanization and consumption update in coming years.

As a leader in China TV market, Skyworth has got first mover advantages by grasping the market opportunity of high-end LCD TV earlier and actively promote the products to update.

We estimate the net profit of Skyworth will amount to HK$ 1.7 billion and 2.1 billion, growing by 36.74% YOY and 24.12% YOY with CAGR of 30.28% in FY11-12.

We expect EPS of HK$0.72 and 0.89, growing by 46.94% YOY and 23.61% YOY with CAGR of 34.77% in FY11-12.

Firstly, we use PE method, a relative valuation. The lasted closed price (3 Sep 2010) is HK$ 4.07 which is 6X and 5X PE on EPS of FY11E and FY12E. Comparing with peers in China, we believe the current price can`t properly reflect its good momentum of profit growth and bright prospect.

We believe current price is obviously undervalued. Considered the PE levels of peers and its own historical PE, we afford 11X PE on EPS of FY11E, concluding target price of HK$7.92.

In addition, by DCF method, an absolute valuation, we conclude the value per share of HK$8.10, assuming the long-term growth rate of 3% considering realities of the industry.

Taken together, we target 12-m price as HK$7.95, a 95% premium to current price and initially rate it BUY.

[winston]

Not vested

DJ MARKET TALK: CS Cuts Skyworth Target To HK$6.70 From HK$7.50
Oct 21, 2010


1605 [Dow Jones] STOCK CALL: Credit Suisse cuts Skyworth (0751.HK) target price to HK$6.70 from HK$7.50 after lowering fiscal FY11-13 EPS forecasts by 21%, 16%, 11% on view industry inventory clearance ruined company's margins, results in fiscal 1H11, resulting in more prudent average selling price and margin assumptions.

Notes company's September flat-panel TV sales in China fell 2% on-year, believes weaker than expected September shipments caused by strategic focus on profitable LED TVs and relatively conservative inventory arrangement for half-year end.

Says company set for notable improvement in fiscal 2H as margins, profitability recovering, assisted by fast-expanding LED TV sales mix. Keeps at Outperform.

Source: Dow Jones Newswire

[winston]

Not vested

MARKET TALK: Skyworth Likely Drop On Pft Warning, Weaker Sales


Source: Dow Jones Newswire

[Atlas]

2011/04/15 08:38 HKT MARKET TALK: Skyworth May Fall Despite March TV Sales Growth (Dow Jones News)
2011/04/15 08:44 HKT MARKET TALK: Skyworth May Fall Despite March TV Sales Growth (Dow Jones News)
2011/04/15 09:23 HKT MARKET TALK: Skyworth May Rise More; Positive LCD TV Sales Data (Dow Jones News)
2011/04/15 10:27 HKT MARKET TALK: Skyworth Down 0.6%; Strong Data Priced In - SHKF (Dow Jones News)
2011/04/15 10:34 HKT MARKET TALK: Skyworth Down 0.6%; Strong Data Priced In - SHKF (Dow Jones News)

The 9:23am dude didn't get the message (or the envelope). Also always interesting how they repeat the "right message" to make sure it gets noticed.

Not easing being short these days!

[winston]

not vested

DJ MARKET TALK: Skyworth Down 8.5%; But Valuation Attractive -DBS

1017 [Dow Jones] Skyworth (0751.HK) slumps 8.5% to HK$3.25 on top of its 5.1% fall Thursday, after its 1H net profit rose 30% on year to HK$461 million, marking only 31% of full-year consensus earnings now pegged by Thomson Reuters.

Still, DBS Vickers says the bottom-line is in line with its estimate but could likely disappoint more aggressive market forecasts.

It says Skyworth registered 33% TV revenue growth in October, and rising proportionate sales of high-margin TV models should help to sustain profitability ahead.

The house keeps Skyworth at Buy on "attractive valuation" of 5.8X FY13 P/E that offers 4.4% dividend yield; its target price is unchanged at HK$5.25.

Source: Dow Jones Newswire