Category: Money tips Release Date: 2006-09-15
Companies to enter the car navigation field December 28, 2006, Coship held a press conference to launch the independent development of two new car GPS navigation products, indicating that the company entered the field of automotive electronics. Coship to the international advanced navigation technology to track for many years now been the acquisition of satellite communications, wireless communications, mobile video, smart positioning and query, digital audio-visual entertainment, voice, intelligence tips, the best route design, user-friendly control methods and many other key technology areas of automotive navigation. According to development strategy, Coship will play in the field of digital video technology-rich accumulation and industrialization experience, and gradually integrated circuits to digital television, interactive digital television business systems, mobile video, car electronics, security electronics and other areas to form digital video as the core of the diversified pattern of the company's main business to form a rational product structure.
The expense ratio is expected to continue rising in 2006 increased the company's R & D staff team-building, leading to a substantial increase in administrative costs since 2004, the company's various cost rate to a gradual upward trend, there is no sign of decline, the company said that the by strengthening internal management and improve the level of production and operation management to reduce fees and charges.
Maintain hold rating based on our earnings forecasts, the company corresponds to the current stock price-earnings ratio of 54.66 times in 2006, 32.81 times 2007 earnings and 2008 dynamic price-earnings ratio 30.30 times, and small and medium plate market and the industry average, compared to moderate positioning company's share price have not been significantly overestimated and underestimated, and thus maintain the holdings of investment grade.
Companies to enter the field of car navigation, digital video core will form the core of a diversified pattern of December 28, 2006, Coship held a press conference to launch the independent development of two new car GPS navigation products, indicating that companies to enter the field of automotive electronics.
Coship to the international advanced navigation technology to track for many years now been the acquisition of satellite communications, wireless communications, mobile video, smart positioning and query, digital audio-visual entertainment, voice, intelligence tips, the best route design, user-friendly control methods and many other key technology areas of automotive navigation. In September 2006, the company set up a car video division.
As the popularity of the country in the car, GPS market is quite mature, such as Japan's car GPS system utilization as high as 59% in Europe and the United States is about 25%. And the end of 2005, China's car is equipped with GPS navigation equipment less than 10 million vehicles, vehicle rate of less than 2%, present, China's car GPS navigation products are entering a phase of rapid development, product demand, with the Island has built a GPS navigation product line because navigation products can share the company's R & D platform for some of the original, the production line also enables flexible production, the project's initial investment and would not be significant, because 2007 is the launch year, the contribution of the main income is still not great .
According to development strategy, Coship will play in the field of digital video technology-rich accumulation and industrialization experience, and gradually integrated circuits to digital television, interactive digital television business systems, mobile video, car electronics, security electronics and other areas to form digital video as the core of the diversified pattern of the company's main business to form a rational product structure.
With the steady development of set-top box businesses around the country to gradually convert the whole digital TV started in 2006 appeared in fast-growing cable set-top boxes; the international market, satellite receivers and terrestrial set-top boxes have also maintained steady growth, the company November 2, 2006 Announcement and Saudi Arabia Arab DN companies have signed a total amount of about 16 million U.S. dollars a framework supply agreement, the company promised in 2007 to the company's total purchases of at least 16 million U.S. dollars, mainly supply products for satellite receivers and high-frequency head, supply period from December 2006 to December 2007, based on an overall framework agreement on the above company will be signed a month with DAN's specific supply contract.
IP set-top boxes in the early stage of rapid growth, but because of a relatively low base, despite the tremendous growth of the proportion of main contribution is still small.
In 2006, the Company has strengthened its market development, R & D investment and production and management, and adopted the RoHS (lead-free production) found that access to high-end market for the company has laid a good foundation.
The expense ratio is expected to continue rising according to the company statement published on a regular basis, the company increased R & D personnel in 2006 ranks, leading to a substantial increase in administrative costs, such as the mid-2006, company management fees compared with same period last year 17.5804 million yuan, an increase of 75.07%. In addition, the company stepped up marketing efforts to increase the cost to attend the show, mainly large and medium cities in the domestic marketing agency, leading to a faster increase in operating expenses, the first half of 2006 compared with same period last year 5.7451 million yuan, an increase of 37.43%.
2006 the first three quarters, the company's total cost rate of 16.00 percent, up by 12.65% over the same period in 2005 had increased significantly. Among them, the management fee rate and the rate of operating expenses grew more, year on year decline in the rate of finance charges, making the total cost rate has increased significantly.
Since 2004, the company's various cost rate to a gradual upward trend, there is no sign of decline, the company said it would strengthen internal management and improve the level of production and operation management to reduce the fees and charges.
Profit forecast assumes that main business profit margins at the company's products an overall downward trend in prices, but because of the relatively high proportion of gross profit margins in cable set-top box shipments increased, the overall gross profit margin is relatively stable. At the same time the company's raw material costs have also been a downward trend, partially offset by lower prices of the company's gross margin impact.
In the projections, assumptions 2006,2007 and 2008 consolidated gross margin was 20.4%, 18.6% and 18.0%.
To maintain holdings of investment grade based on hardware-related equipment industry predicted that in 2006 the average PE of 49.98 times, 36.48 times in 2007; primary and secondary PE Market in 2006 for 43.35 times in 2007 to 31.39 times in 2008 to 24.38 times. According to our earnings forecasts, the company stock price corresponds to the current price-earnings ratio of 54.66 times in 2006, 32.81 times 2007 earnings and 2008 dynamic price-earnings ratio 30.30 times, and small and medium plate market and the industry average, compared positioned company's share price is moderate, was not significantly higher estimates and underestimated, and thus maintain the holdings of investment grade.
