Investor Presentation • Oct 12, 2007
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Media
Date: October 12, 2007
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www.swissequitygroup.com
| COMPANY PROFILE 3 |
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|---|---|
| GROUP STRUCTURE 3 |
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| BUSINESS UNITS 3 |
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| MANAGEMENT8 | |
| SHAREHOLDING STRUCTURE 8 |
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| FINANCIAL PERFORMANCE 9 |
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| MARKET 11 |
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| COMPETITION13 | |
| KEY HIGHLIGHTS 13 |
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| OUTLOOK AND PROJECTIONS 14 |
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| SCOT ANALYSIS 16 |
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| DETAILED FINANCIALS 17 |
Date of report: October 12, 2007
Core business: Advertising, Exhibitions, Conferences and Publishing
Exchange: Frankfurt Stock Exchange
Date of listing: October 10, 1999
Stock price as on October 12, 2007: EUR 26.60
EUR 27.00 - EUR 17.00
Fiscal Yr End: Dec 31
Local Currency: EUR
Ticker-symbol: BMQ
Shares Outstanding: 5,999,466
Market Cap as on: October 12, 2007: 159.59 mEUR
Free Float: 52.00%
Business Media China AG (hereinafter referred to as "BMC" or "Company") is a fast growing advertisement company focused on outdoor media (Railways and Airports) and exhibitions, conferences and publishing in China.
BMC has evolved over the last 2 years into a completely China-focused outdoor advertising and exhibition company. BMC is close to completing its first large investment phase during which it invested in relationship-building for procurement and sales of advertising rights (i.e. alliances, acquisitions and partnerships) and is on the verge of reaping benefits from it.
BMC Railway Advertising has been honoured with one of the key Chinese media prizes for the "Most important contribution to new media formats in 2006."
BMC Co. Ltd., China (BMC China, a 100% operational subsidiary of BMC AG in China) is the primary Chinese vehicle through which the company operates. BMC China has 8 subsidiaries out of which 5 subsidiaries are in the exhibition and publishing space (one is under formation).
The Company is structured as follows:
BMC Advertising started its operating business at the start of 2007 and has recorded initial revenues. Earnings were negative in the first six months in line with the forecast. In FY 2007, the company got its business license.
BMC Flying Dragon was acquired (a 51% stake) by BMC in FY 2006 to enter into the fast growing market of airport advertising. This company currently has advertising rights for nine major airports in China.
China Railway Media has been registered for formation in 2006. This company will focus on marketing advertising space at railway stations throughout China.
BMC Baiwen is a subsidiary of BMC which conducts beauty and cosmetics trade fairs in China. This company organized a highly successful beauty and cosmetics trade fair in FY 2006. During FY 2006, BMC Baiwen successfully held the Beauty Expo Shanghai Trade Fair, and recorded a significant increase in revenues.
BMC Zhenwei was restructured and many changes such as staff cuts and new recruitment as well as the implementation of new systems for sales and trade fair organizations were implemented. The Company's interest in BMC Zhenwei was increased by a further 15% to 66% in 2007. After the business license has been issued for the newly acquired interest, BMC AG will hold a total interest of 66.0% in BMC Zhenwei.
BMC Herong's acquisition and integration was completed during the FY 2007. This new subsidiary will hold its trade fair in the third quarter of 2007
Outdoor advertising is the fastest growing media form in China and is the main source of revenue generation for BMC. The company sells advertising media formats at railway stations and airports to advertisers from various sectors including telecommunications, automotives, beauty products, and electronics. BMC follows a very innovative 'invest and reap' model. This requires a relatively large investment upfront to secure long-term rights for selling advertising space in railways and airports, to reap long term benefits in terms of increasing revenues and margins from selling the same space multiple times through short term contracts.
BMC's other revenue streams flow from international exhibitions, conferences and publishing in the country. The business model for the exhibitions segment is acquiring and developing important exhibitions and venues in key cities and provinces of China and marketing them at the national and international level, generating revenues from sponsorships, exhibitors and visitors.
| BMC customer list | |||
|---|---|---|---|
| Proctor & | Daimler | ||
| Gamble | Chrysler | ||
| Estee | Apple | ||
| Lauder | iPOD | ||
| British | Schwarzk | ||
| Airways | opf | ||
| Toyota | Sina | ||
| Hewlett | Toni & | ||
| Packard | Guy | ||
| Kose | Shiseido | ||
| Fujitsu | Panasonic | ||
| Intel | Microsoft | ||
| Nokia | TDK | ||
| L'Oreal | Citigroup | ||
| GE | Siemens | ||
| Bayer | Alcatel | ||
| Allianz | Coca Cola | ||
| Samsung | BMW | ||
| IBM | Wella |
Asian consumers have a preference for outdoor advertising, in particular billboard and poster and this type of advertising plays a key role in marketing advertising in China.
An average of 3% of international advertising budgets is spent on out-of-home advertising; this percentage in China was at around 12% of the total budget in 2006. Two bEUR were spent on out door advertising in China in 2006.
BMC focuses on advertising in airports and railway stations across China.
Airports are preferred for targeting the high-income groups. According to the China Statistical Yearbook 2006, passenger volumes are estimated to increase from a current total of 151 million passengers by 14% each year through to 2010.
BMC Flying Dragon holds media rights and outdoor advertisement licenses (using more than 30 formats of advertisements) for nine airports in China. It is an exclusive publisher and distributor of direct marketing material delivered at and post security check areas. It also operates business centres and internet kiosks. Given below is the table showing details of the advertising space at prominent airports in China.
| Airport | Passenger traffic in 2006 in million |
Media share of the permitted ad space |
|---|---|---|
| Beijing International | 48.7 | 10% |
| Hangzhou | 9.9 | 50% |
| Qingdao Olympics | 6.8 | +50% |
| Chengdu | 16.3 | 20% |
| Chongqing | 8.1 | 100% (exp FY 2007) |
| Xi'an | 9.4 | Not Available |
| Shanghai | 19.3 | Not Available |
| Guandzhou | 26.2 | Not Available |
| Xiamen | 7.5 | 100% (exp FY 2007) |
BMC is continuing to negotiate additional airport rights to become one of the largest providers of airport advertising. It aims to offer the international and Chinese advertising sectors an end-to-end, China-wide offering for airport advertising.
In October 2006, BMC formed a joint venture with China Railway Century Media Co., Ltd. to acquire or license advertising rights at important railway stations all over China. The overall railway passenger movement in China is about 1 billion every year.
BMC Railway Media has rights for 4 important high passenger traffic stations in China (Beijing West, Beijing Central, Tianjin and Shijiazhuang). In November 2006, BMC also signed a JV for marketing ad space in China's 20 largest railway stations. The advertisement spots at the railway stations are primarily light boxes and light pillars. The total passenger traffic was 139 million in 2006 (expected to grow at 20% per year) in the four cities for which the Company got a contract. The details of the four stations are as below:
BMC has planned expansion in additional railway stations that are as follows:
| Phase | Cities |
|---|---|
| Phase 1 | Shanghai, Shanghai South, Hangzhou, Nanjing, |
| Ningbo | |
| Phase 2 | Guangzhou, Guangzhou East, Shenzhen, Changsha |
| Phase 3 | Chengdu, Chongqing, Xi'An, Wuhan |
| Phase 4 | Kunming, Sehnyang, Zhenzhou, Dalian,Qingdao |
| Phase 5 | Ji Nan, Lanzhou |
| Phase 6 | Other smaller stations according to profitability |
The BMC Group pursues a cross-media approach in its Exhibitions & Publishing division. Parallel to the events, BMC publishes professional journals with editorials for each of the trade fairs or conference topics, thus allowing advertising customers to approach their target groups using multiple channels. Given below are the details of the magazines published by BMC:
| Title | Circulation | Frequency | Target Audience |
|---|---|---|---|
| Estetica | 10,000 | Bi-monthly | Salons, hairstyle professionals and |
| China | cosmetics companies | ||
| ICN China | 21,000 | Bi-monthly | Retail industry: distributors, traders, |
| producers and ingredient suppliers | |||
| Mining | 5,000 | Monthly | Chinese speaking mining community |
| Journal China | both Government and industry |
BMC's largest shareholder Mesago Holding has a track record in organizing exhibitions in Germany and China. BMC operates through its subsidiaries BMC Baiwen Exhibitions, BMC Zhenwei Exhibitions and BMC Herong Exhibitions. The Company has planned 11 main exhibitions in 2007 as detailed in Appendix I.
Chinese exhibitors, participants and advertisers pay less than 1/3rd of the international price. The growth in the exhibition revenue is expected due to new exhibitions organized by BMC. BMC is expected to re-structure the newly acquired exhibitions business. Some of the important events organized by BMC are:
| China Beauty Expo | China's largest beauty exhibition based in Shanghai |
||
|---|---|---|---|
| 展 CEICO | China International Beauty Week |
Cauly Week | The most important beauty exhibition in Beijing and surrounding regions |
| CEICO | China Mining | $\triangleright$ A Congress / Exhibition – the No.1 mining event in China and the 2nd most important mining event worldwide |
|
| China SMT Forum | China SMT Forum 2007 |
China's premier SMT & MPT event | |
| FICO | China Commercial Vehicles |
CHINA COMMERCIAL ۲ 2007 VEHICLES |
The largest transport / logistics exhibition in China and the main sourcing platform for government procurement |
| PPI & FDC China | PPI Chi | Among the top 3 food events in China covering both processing and finished products and the leading food event in South China |
|
| GIMT + AMB China | In cooperation with the world renowned AMB Stuttgart - an important and influential machine tool exhibition in South China. |
||
| CIOE | CIDE 2007 | The largest Optoelectronic exhibition ×. worldwide |
|
| CHINA URANIUM | Congress & exhibition of Chinese uranium, mining and nuclear power industry |
7
As recent as Sept 2007, BMC organized a fair for optoelectronics in China where over 1900 exhibitors presented their products to more than 77,000 visitors in 4 days.
BMC has started a development project focusing on sourcing platforms. Approx. 50,000 exhibiting companies and around 400,000 trade-fair and conference visitors are registered in a database to form a basis for a planned online portal. This communication platform which will be developed with the help of partner companies is scheduled to go live in 2007.
| Experienced management |
|---|
| Strong local network |
| High value advertisement rights |
The Executive management consists of the following experienced and seasoned executives.
Mr. Hilligardt is a 25 year veteran in the media and exhibition business. He is also the owner and President of Mesago Holding GmbH and founder of Mesago Messe Frankfurt. He has a strong business network in China developed over the past 15 years.
Mr. Yang has held executive positions in media companies in China for the past 7 years. He joined Business Media China as General Manager and is also a director in the management board of BMC AG. From August 2001 to January 2003, he worked with China Great Wall Economy Development Group in various posts ranging from Assistant to General Manager.
Mr. Eeden has more than 30 years of overall experience and more than 15 years in the media and exhibition business. He has held senior positions with Miller Freeman, United Business Media plc and EMAP plc.
Mr. Sassmann has more than 10 years of international experience in the exhibition business. He has been the Director, Administrations at BMC since 2005 and Vice President, Subsidiary Management at Messe Frankfurt (1996 – 2004).
The management team has been further strengthened by the recruitment of experienced advertisement executives in China:
Li Yan was the COO of JC Decaux China (one of the largest outdoor advertisement companies in China with 100 mEUR turnover). Earlier she was COO, Media Nation Group and CEO, Top-Result Advertising and Shanghai Metro Advertising.
Denny joined BMC from JC Decaux where he worked as General Manager from 2005 to 2006. From 2003 to 2005, he worked as a General Manager with Media Nation Inc., National General Manager at Bus Media Manager & General Manager of Chendu MPI Public Transport Advertising Co. Ltd.
Mesago Holding GmbH is the main shareholder of BMC. The total number of shares outstanding as on October 12, 2007 is 5,999,466 with 52% of these shares held by the general public. The Company management holds 3% of the outstanding shares.
We have used FY 2005, FY 2006 annual reports and half yearly report FY 2007, Company's investor presentation and information available in the public domain for our analysis.
• The operating profit margin and net profit margin adjusted for the cost of acquisitions and excluding other operating profits were -26.18% and -23.54% in FY 2005 and FY 2006 respectively. This corresponded to a net operating loss of 1.95 mEUR and net loss of 1.75 mEUR in FY 2006. The operating profit and net profit margin was negative due to one time high project development costs of 1.7 mEUR towards building the railway advertising business and legal and consulting costs of EUR 682,000.
| Particulars (mEUR) | FY 2005 | FY 2006 | H1 2007 |
|---|---|---|---|
| Revenue | 2.19 | 7.48 | 8.11 |
| Gross profit | 0.76 | 1.41 | 0.41 |
| Net profit | (1.40) | (6.41) | (3.94) |
| Profitability ratios | FY 2005 | FY 2006 | H1 2007 |
|---|---|---|---|
| Gross margin | 34.74% | 18.80% | 5.03% |
| Operating margin | -59.30% | -88.35% | -50.88% |
| Net margin | -63.85% | -85.72% | -48.54% |
Expenditure as percentage of revenue
www.swissequitygroup.com
The overall advertisement market in China was worth 13 bUSD in 2005 and is expected to grow at 15-18% p.a. until 2010 (Source: SAIC State Administration for Industry and Commerce).
China has strong regulations for advertisement and media content. The regulations protect the consumers from actual or perceived risks of misinformation, potentially reducing advertisements by categories such as health care, cigarettes, and cosmetics. However, outdoor advertisements are not regulated very strictly by the government.
In mid-2006, the Government stopped Proctor & Gamble from marketing SK-II, a leading skin care product because the General Administration of Quality Supervision, Inspection and Quarantine identified supposedly harmful ingredients (neodymium and chromium) in the product. In late 2006, the Government stopped newspapers carrying advertisements by medical clinics.
The advertisement market comprises of mediums such as TV, newspapers, magazines and outdoor and online publicity. In 2005, TV advertisements were the largest sector worth 32,474 mRMB (or 3,247 mEUR) followed by newspaper advertisements worth 30,989 mRMB (or 3,099 mEUR). These sectors are expected to grow at 16% and 15% YOY respectively till 2010. In 2005, online advertisements grew at more than 50% YOY worth 4,405 mRMB (or 441 mEUR). (Source: Goldman Sachs)
China's urban population is expected to reach 615 million by 2010 from 523 million in 2003
China's per capita ad spend (EUR 5) is much lower than US, Hong Kong and UK (EUR 236)
The 4 large cities with only 9% of the overall Chinese population accounted for 50% of advertisement spend in 2005.
| Macroeconomic | Value |
|---|---|
| Factors | |
| GDP growth rate | 10% |
| Population growth | 0.6% |
| rate | |
| Rail passenger | 3.3% |
| growth rate | |
| Air passenger | 10% |
| growth rate | |
| Consumer inflation | 2.7% |
| rate (Feb 2007) | |
| Company | FY 2006E revenue |
|---|---|
| JC Decaux | 100 mEUR |
| Clear Media | 90 mEUR |
| Tinajun | 60 mEUR |
| Tom Outdoor |
45 mEUR |
| Dahe Outdoor |
30 mEUR |
BMC operates in the outdoor advertisement sector in China. This sector is the third largest sector, worth more than 2 bUSD in 2005 and expected to reach 4 bUSD by 2010 (Source: SAIC State Administration for Industry and Commerce). The growth in this sector is driven by the following:
Airports, as a location, are in demand to target high-income groups that advertising agencies look for. The number of air passengers in China increased by 19% YOY (139 million in 2005) and are expected to grow by at least 10% per year. The increase in the number of passengers is driven by the increased investments by the Government in Chinese airports.
Railway stations, as a location, are also in demand to target the medium income urban population. The number of rail passengers in China was 1 billion in 2005 and is expected to grow due to industrialization and urbanization. Higher industrial growth and global flow of capital into China has been a growth driver in this market. Tier 1 cities in China such as Beijing, Shanghai and Guangzhou are getting crowded. Tier 2 cities such as Nanjing, Shenzhen, Changsha, Chengdu, and Xiamen are growing at an attractive pace. These cities are close to industrial hubs and emerging commercial centres. The rail passenger traffic is expected to increase rapidly in the tier 2 cities.
BMC also operates in the exhibitions and conferences segments which are a popular marketing channel. Expected annual growth in the consumer product exhibitions such as cosmetics and healthcare and electronics is in the range of 30% p.a. till 2010. (Source: SAIC State Administration for Industry and Commerce)
The advertisement delivery volumes and audience captivity can be mapped into four quadrants as shown in the accompanying figure.
The outdoor advertisement market in China is fragmented with few large international companies and several local and niche companies. According to the China Advertising Association, there are approx. 60,000 outdoor advertisement companies. However, the top five companies account for 16% of the total market share.
BMC competes with large outdoor advertisement companies such as Lamar US and Clear Channel Outdoor (headquartered in the US), JC Decaux (headquartered in Europe) and Clear Media and Focus Media (headquartered in Asia) as well as local and niche companies such as Beijing Media.
The following table highlights BMC's competitors and the type of advertisements they specialise in:
| Competitive analysis | ||||||
|---|---|---|---|---|---|---|
| Company | Airports | Railways | Metro (Subway) |
Bus shelter/ body |
Billboard | In-store TV |
| JC Decaux | √ | √ | √ | √ | ||
| Clear Media | √ | √ | √ | |||
| Tom Outdoor |
√ | |||||
| Dahe Media | √ | √ | ||||
| Focus Media |
√ | √ | √ | |||
| BMC | √ | √ |
Due to smaller homes, the Chinese people spend more time outdoors, relative to their US or European counterparts. Thus outdoor advertisements are increasingly popular in China. At present the outdoor advertisement market represents 15.4% of the overall advertisement market and is growing at 19% p.a in China. This market is expected to surge due to the 2008 Olympic Games in Beijing and 2010 Shanghai World Expo.
BMC has a scalable business model as it can start selling the advertising space immediately as and when it gets contracts for stations or airports (it has the infrastructure ready for the purpose). In fact, in all probability the advertisers themselves will approach the company and will be ready to pay a price for prime space. BMC can also achieve larger revenues by selling the prime space for shorter time periods.
BMC is aiming at a market leader position in the outdoor marketing in China and has undertaken major investments in FY 2006 and H1 2007. In H1 2007, the Company has acquired advertising space available till 2015 at the Xi'An airport. The Company has also acquired TC Gruppe GmbH to establish a direct access to German advertising clients so as to launch the necessary customer
communication for market penetration and branding in the early phase itself. Once the investments are done, BMC is set to achieve a surge in revenue, marginal cost of operations and increase in market share in the short term.
BMC enjoys excellent personal relations with the respective railway and airport authorities' combined with BMC's expertise in media development and marketing. This ensures the Company's ability to acquire long-term contracts and cooperations.
BMC has formed major alliances and partnerships recently:
BMC has recruited some of the best professionals in the Chinese advertising market. In 2006, BMC recruited Liyan Mo as President and Denny Wen as CEO of BMC Co. Ltd. in China. They are both experienced advertising executives and have worked at JC Decaux China, one of the largest outdoor advertisement companies in China. Recruiting local professionals also means overcoming the Chinese language barrier.
The Chinese government stringently controls television, newspaper and radio and also magazines, which are allowed to publish but are not allowed to write on politics. The government is also framing regulations for the control of Internet. Relative to these media types, authorities are least interfering where outdoor media is concerned. BMC being primarily in the outdoor media segment faces the least interference from the government.
The Company strategy is based on expansions in the Chinese market through organic and inorganic modes. The new market entry in other regions will be done mainly by forming JVs and alliances.
The Company's strategy is to consolidate its business in the East Coast of China. It is constantly on the lookout to buy either 100% or controlling interests in companies located in the metros of Beijing, Shanghai and Guangzhou. BMC is also recruiting well-known Chinese professionals in the advertising space to head these companies.
BMC is in negotiations with organizers and venues in the newer markets of Dalian, Hong Kong, Macao and Shenzhen for either an alliance, joint venture or a complete buyout. The company then plans to develop the products as per international standards to attract large multinationals. Further growth will be generated through professional development of the existing exhibitions and conferences.
BMC is planning and launching new exhibitions and conferences as well as reformatting and reinventing its existing exhibitions and conferences through:
BMC is growing in China through mergers and acquisitions with the local venues and organizers. The company sees multiple benefits in this:
BMC also plans to form joint ventures with leading western exhibitions for China. For its publishing segment, the company has license agreements and joint ventures with top Chinese, European and American publishing houses.
BMC is a growing company in the dynamic and fast evolving outdoor advertising industry. The Company has acquired many other companies and formed acquisitions and alliances in FY 2006 and H1 2007. This will certainly help BMC to grow rapidly in future.
According to the Company, the revenue growth in the medium term will be double digit and the Company will post its first profits in FY 2008. After the consolidation, the Company expects to reach revenue of 26-28 mEUR in FY 2007. The Company expects revenue of 64 mEUR and 83 mEUR in FY 2008 and FY 2009 respectively including from other income. We have not analysed other income.
Our analysis suggests that the Company will significantly improve its revenue in FY 2008 to 51.32 mEUR exploiting the investments in the past and the 2008 Olympics in China.
| Valuation (figures in mEUR) | ||||||
|---|---|---|---|---|---|---|
| Particulars FY 2007F FY 2008E FY 2009E |
||||||
| Segment wise revenue | ||||||
| Airport division | 7.25 | 24.21 | 29.59 | |||
| Railway division | 12.25 | 18.21 | 21.58 | |||
| Exhibitions division | 6.61 | 8.90 | 11.90 | |||
| Total Revenue excluding | 26.11 | 51.32 | 63.06 | |||
| other income | ||||||
| Operating profit (EBIT) | - | 5.70 | 12.28 | |||
| Net profit | - | 4.3 | 9.21 | |||
| EPS (EUR) | - | 0.7 | 1.54 |
F- Company forecast, E – Estimates
| STRENGTHS • Strong local network with media buyers and Government agencies in China • High value portfolio of advertisement rights in airports and railways stations • Experienced management with strong track record • Favourable capital structure, enabling growth and acquisitions |
CHALLENGES • Maintaining strong relations with Chinese Government agencies • High cost management based in Germany |
|---|---|
| OPPORTUNITIES | THREATS |
| • Use of experience in growing further |
• Overall economic slowdown |
| across airports and railways | • Adverse regulatory reforms |
| • Exploit exhibition formats |
| Fiscal Year Ended on Dec 31 | FY 2005 | FY 2006 | H1 2007 |
|---|---|---|---|
| EUR'000 | |||
| Assets | |||
| Goodwill | 2,007.60 | 6,361.70 | 7,992.80 |
| Other intangible assets | 19.80 | 29.70 | 4,115.80 |
| Property, plant and equipment | 242.00 | 813.40 | 1,628.00 |
| Financial assets | 998.50 | 60.00 | 0.00 |
| Non-current assets | 3,267.90 | 7,264.80 | 13,736.60 |
| Deferred tax assets | 47.30 | 290.50 | 928.30 |
| Non-current receivables and assets | 47.30 | 290.50 | 928.30 |
| Non-current assets | 3,315.20 | 7,555.30 | 0.00 |
| Inventories | 6.40 | 0.00 | 320.90 |
| Trade receivables | 382.00 | 1,901.90 | 3,568.60 |
| Other receivables and assets | 1,354.00 | 8,236.30 | 9,291.20 |
| Effective income tax assets | 83.60 | 168.80 | 231.40 |
| Current receivables | 1,819.60 | 10,307.00 | 13,091.20 |
| Cash and cash equivalents | 2,917.40 | 14,950.60 | 8,168.30 |
| Current assets | 4,743.40 | 25,257.60 | 21,580.40 |
| Total Assets | 8,058.60 | 32,812.90 | 36,245.30 |
| Liabilities and shareholders' equity | |||
| Subscribed capital | 4,545.10 | 5,999.50 | 5,999.50 |
| Reserves | 2,319.20 | 21,315.20 | 21,812.80 |
| Net retained profits | 0.00 | 0.00 | -3,798.20 |
| Interest of Business Media China AG | |||
| shareholders in equity | 6,864.30 | 27,314.70 | 24,014.10 |
| Equity attributable to minority interest | 232.10 | 1,043.80 | 2,008.10 |
| Equity | 7,096.40 | 28,358.50 | 26,022.20 |
| Provisions for deferred taxes | 22.70 | 0.60 | 478.90 |
| Other provisions | 0.00 | 0.00 | 0.00 |
| Non-current provisions | 22.70 | 0.60 | 478.90 |
| Current provisions (other provisions) | 496.90 | 1,094.90 | 1,245.50 |
| Current liabilities | 519.60 | 1,095.50 | 1,724.40 |
| Financial debt | 0.00 | 47.60 | 15.60 |
| Trade payables | 79.60 | 1,732.30 | 0.00 |
| Tax liabilities | 44.90 | 57.10 | 0.00 |
| Other non-current liabilities | 318.10 | 1,521.90 | 539.00 |
| Non Current liabilities | 442.60 | 3,358.90 | 554.60 |
| Non Current provisions and liabilities | 939.50 | 4,453.80 | 9,189.60 |
| Total Liabilities and Shareholder Equity | 8,058.60 | 32,812.90 | 36,245.30 |
| Fiscal Year Ended on 31- Dec | FY 2005 | FY 2006 | H1 2007 |
|---|---|---|---|
| EUR' 000 | |||
| Revenues | 2,109.70 | 7,452.60 | 7,972.70 |
| Other income | 75.90 | 26.00 | 83.60 |
| Changes in Inventory | 0.00 | 0.00 | 54.40 |
| Total revenue | 2,185.60 | 7,478.60 | 8,110.70 |
| Cost of materials | (1,426.40) | (6,072.30) | (7,702.90) |
| Gross profit | 759.20 | 1,406.30 | 407.80 |
| Personnel expenses | (814.10) | (1,883.90) | (1,958.00) |
| Amortization/depreciation | (51.20) | (1,766.40) | (532.50) |
| Other operating expenses | (1,273.10) | (4,647.30) | (2,199.80) |
| Finance costs | (203.80) | (34.50) | (20.90) |
| Other financial result | 287.00 | 318.60 | 176.50 |
| Earnings before income taxes | (1,296.00) | (6,607.20) | (4,126.90) |
| Income taxes | (99.50) | 196.80 | 189.70 |
| Consolidated net loss | (1,395.50) | (6,410.40) | (3,937.20) |
| Shareholders' interest in net loss | (1,470.10) | (6,224.00) | (3,798.20) |
| Loss attributable to minority interest | 74.60 | (186.4) | (139.00) |
| Consolidated net loss | (1,395.50) | (6,410.40) | (3,937.20) |
| Year | FY 2005 | FY 2006 | H1 2007 |
|---|---|---|---|
| Short term solvency ratios | |||
| Current Ratio | 9.13 | 23.06 | 12.51 |
| Quick Ratio | 9.12 | 23.06 | 12.33 |
| Current Liability to Net Worth | 0.07 | 0.04 | 0.07 |
| Current Liability to Inventory | 81.19 | N.A. | 5.37 |
| Asset Utilization or Turnover ratios | |||
| Inventory Turnover | |||
| Fixed Asset Turnover | 0.44 | 0.30 | 0.37 |
| Total Asset Turnover | 0.26 | 0.23 | 0.22 |
| Long-term Solvency or Financial Leverage | |||
| ratios | |||
| Total Debt Ratio | 0.12 | 0.14 | 0.28 |
| Equity Ratio | 0.88 | 0.86 | 0.72 |
| Debt-Equity Ratio | 0.14 | 0.16 | 0.39 |
| Total Liability to Net Worth | 0.14 | 0.16 | 0.39 |
| Fixed asset to Net Worth | 0.47 | 0.27 | 0.00 |
| Efficiency | |||
| Average Collection Period (days) | 66.09 | 93.15 | 81.69 |
| Capital Intensity (Total assets / Net sales) | 0.14 | 3.39 | |
| Account Payable to Sales | |||
| Profitability ratios | |||
| Gross Profit Margin | 34.74% | 18.80% | 5.03% |
| Operating Profit Margin | -59.30% | -88.35% | -50.88% |
| Net Profit Margin | -63.85% | -85.72% | -48.54% |
| Market value ratios | |||
| Market Price per share | 26.60 | ||
| Price/Earnings Ratio | NA | ||
| Book value per share | 4.34 | ||
| Market Value to Book Value Ratio | 6.13 | ||
| Market capitalization (mEUR) | 159.59 |
Method of research: Desk research using publicly available information
| Exhibition | Products | Venue | Sponsors |
|---|---|---|---|
| CHINA SMT FORUM |
Shanghai | China Semi-Conductor Industry Association (CSIA) China Electronics Production Equipment Industry Association (CEPA) China Electronics Materials Industry Association (CEMIA) China Communication Industry Association (CCIA) |
|
| CHINA COMMERICAL VEHICLE |
China's commercial vehicles industry such as Buses, Trucks, Parts & Accessories |
Beijing | Ministry of , P. R. China Beijing Guojian Zhongke Vehicles Technology Co., Ltd. China Road Vehicles Machine Company |
| CHINA BEAUTY EXPO |
Perfumery, cosmetics and skin care products Beauty, hair and nail products Packaging and machinery Raw materials |
Shanghai | CCPIT Specialized Sub-council of Light Industry National Industrial and Commercial Association of China China National Light Industry Association Shanghai Municipal Government Shanghai Trade Exhibition Office Hong Kong Hair & Beauty Merchants Association Hong Kong Trade and Development Council Korea Cosmetics Industry Association Sino-Japan Council for the Promotion of Cosmetics Singapore Manufacturers' Federation |
| PPI CHINA | International Fair for the Food & Drink Processing and Packaging Industry |
Guangzhou | Guangdong Food and Packaging Machinery Industry Association |
| FDC CHINA | International Fair for Food and Drinks such as Non-alcoholic beverages, spirits, wines, beers, processing and packaging machinery |
Guangzhou | China National Food Industry Association China Food Publishing House |
| GIMT + AMB CHINA |
International Exhibition for Metal Working |
Guangzhou | Guangdong Machinery Industrial Quality Managing Association CCPIT – The Sub-council of Machinery Industry Guangdong Mould and Die Association |
| CANTON TEXTILE |
International Textile Fair | Guangzhou | Guangdong Textile Association CCPIT Sub-council of the Chemical Industry |
| CHINA BEAUTY WEEK |
Hair products, cosmetic, professional beauty salon products equipment, perfumes & toiletries, nail products, etc. |
Beijing | All-China Women Federation Asia Beauty & Hair Association Beijing Municipal Government CCPIT Specialized Sub-council of Light Industry China Flavor and Fragrance Cosmetics Industry Association China Beauty Chamber of the China Commerce Federation China Beauty & Fashion Newspaper China Beauty & Hair Association Hong Kong Cosmetics Industry Association Hong Kong Hair & Beauty International Business Development |
| CIOE China International Optoelectronic s Exposition (CIOE) |
Laser & Infrared Applications Optics Optoelectronic Displays & LED Semiconductor Lightings |
Shenzhen | Ministry of Commerce, China Ministry of Science and Technology, China Ministry of Information Industry, China Chinese Academy of Science |
| CHINA URANIUM |
Congress & exhibition of Chinese uranium mining and nuclear power industry |
Beijing | China National Nuclear Corporation China Atomic Energy Agency |
| CHINA MINING | Asia's Premier Mining Congress and Exhibition |
Beijing | State Development and Reform Commission, P. R. China Ministry of Finance, P. R. China Ministry of Commerce, P. R., China China Mining Association World Bank Group Canadian Embassy, P. R., China Australian Embassy, P. R., China |
www.swissequitygroup.com
| Reed Exhibitions 2007 China Exhibition & Conference Calendar (as on Mar 30th, 2007) |
|||
|---|---|---|---|
| Electronics & Electrical Engineering | |||
| NEPCON China 2007-for SMT & microelectronics industry | Shanghai | ||
| EMT China 2007 | Shanghai | ||
| NEPCON South China 2007 | Shenzhen | ||
| EMT South China 2007 | Shenzhen | ||
| Automotive Electronics South China 2007 | Shenzhen | ||
| Bohai Electronics Week 2007 | Tianjin | ||
| Engineering/Manufacturing/Processing | |||
| Aluminium China 2007 | Shanghai | ||
| ATE China 2007 (Assembly Technology Expo China) | Shenzhen | ||
| Quality Expo China 2007 | Shenzhen | ||
| Asia Manufacturing Technology Expo 2007 | Dongguan | ||
| COMPOSITES & RP Asia 2007 (Asian Trade Fair & Conference for Composites, | Hong Kong | ||
| Technology & Applications) | |||
| Transportation & Logistics | |||
| SITL Asia 2007(Asian Int'l Transport & Logistics Exhibition) | Shanghai | ||
| Packaging & Printing | |||
| SINO-CORRUGATED 2007 | Shanghai | ||
| LIQUITEK China 2007 | Shanghai | ||
| PACKAGING China 2007 | Shanghai | ||
| SINO-FOLDINGCARTON 2007 | Shanghai | ||
| Pharmaceuticals & Medical | |||
| MEDPHARM 2007 | Haikou | ||
| The 57th CMEF (China Int'l Medical Equipment Fair 2007-Spring) | Dalian | ||
| The 4th ICMD (Int'l Component Manufacturing & Design Show 2007-Spring) | Dalian | ||
| The 57th PHARMCHINA (2007-Spring) | Dalian | ||
| The 58th API China (China Int'l Pharmaceutical Ingredients Fair (2007-Spring) | Nanjing | ||
| Interphex China | Nanjing | ||
| The 57th EXPOLAB | Nanjing | ||
| The 42nd New Drugs China | TBC | ||
| The 4th Interherb | Xiamen | ||
| The 8th CMEF MIDDLEWEST(China Int'l Medical Equipment Middlewest Fair) | Kunming | ||
| LifeCare China | Kunming | ||
| The 5th ICMD (Int'l Component Manufacturing & Design Show 2007-Autumn) | Chengdu | ||
| The 58th CMEF (China Int'l Medical Equipment Fair 2007-Autumn) | Chengdu | ||
| The 59th API China(China Int'l Pharmaceutical Ingredients Fair 2007-Autumn) | TBC | ||
| The 58th PHARMCHINA (Autumn) | TBC | ||
| Travel & Recreation | |||
| G2E Asia 2007(Global Gaming Expo Asia 2007) | Macau | ||
| Asia Luxury Travel Market 2007 | Shanghai | ||
| CIBTM 2007(China Incentive, Business Travel & Meetings Exhibition) | Beijing | ||
| Decoration & Design | |||
| International Home Décor & Design 2007 | Shanghai | ||
| 100% Design Shanghai Preview | Shanghai |
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