1. To develop PCB business, home industry competition top.
Company’s main businesses include PC and related products and Printed circuit board (PCB) production Sell , Which, PCB business is now the major fund companies to invest. 2006-2008, the company’s PCB business revenue compound annual growth rate of 57%, in the economic downturn in 2009 has about 30% increase. The company acquired in 2003, zhuhai Founder Technology Multilayer PCB Co., Ltd., officially entered the PCB industry. At present, the company’s PCB business, production, sales and management are still mainly concentrated in Zhuhai, Chongqing and Hangzhou, both the layout, but the income share are small.
The company’s PCB business products for the HDI, high-multilayer and the system backplane, which the higher gross margin HDI PCB board sales accounted for 55% of total business income, back about 25%, multiply about 15%. HDI board is mainly used for high-end mobile phones Electronic Consumer goods, the company mainly downstream mobile phones, switches and other communications industries and enterprises, the main customers of Huawei, day language, Dragon flag, ZTE. Company raised in the previous HDI project has reached production in Zhuhai, with the main production system backplane industrial park in Chongqing PCB production, PCB production capacity will further enhance the company in a good market environment and production company operating under normal conditions, is expected to the year 2010, the company HDI production forecast of about 4 million feet. Backplane and system board production forecast to reach about 3 million feet. Company is carrying full load capacity, expanding production capacity is conducive to business income of the company’s rapid development PCB. We believe that the company’s PCB products will be market demand for support, the next 2 years will maintain rapid growth, accounting for revenue and profits will be further enhanced.
2.PC business to stable development.
PC business, the company’s target was to maintain sales volume, stable market share and achieve steady growth. Statistics show that in 2008, the company PC market share of about 7.5%, ranking second domestic manufacturers, the fourth overall market. The current highly competitive PC industry, subject to price wars and low-cost firms to enter the Home Appliances Countryside and other effects, from January to June 2009, the company PC operating margin fell 0.72 percentage point to 5.98%. This part of the business is expected to maintain the existing scale of contribution to the stability of income.
3. Wait for the allotment approval, currently no asset injection plan.
Prior to that, because Financial Soros expressed investment interest of the Founder Group, Founder Group, led all of the concerns of a possible asset injection. Founder Group as the only A-share listed companies, said the program is currently before the placement of shares proposed to raise funds for expansion projects and the replenishment of Chongqing, Zhuhai, HDI PCB Industrial Park, there is no short-term assets into the plan.
4. Profit forecast and rating.
Expected 2009,2010 and 2011, the company earnings per share were 0.05 yuan, 0.08 yuan and 0.11 yuan, according to December 8, 2009 closing price of 5.32 yuan, and the corresponding dynamic price-earnings ratio of 106 times, 66 times and 48 times, we are optimistic about company’s PCB business, but considering the company’s current valuation higher, maintaining the “neutral” investment rating.