Dutton Associates Announces Investment Opinion: Qiao Xing Universal Telephone Raised To Strong Buy Rating In Update Coverage By Dutton Associates.EL DORADO El Dorado, legendary country of South America El Dorado (ĕl`dərä`dō, –rā`–) [Span.,=the gilded man], legendary country of the Golden Man sought by adventurers in South America. HILLS, Calif. -- Dutton Associates updates its coverage of Qiao Xing Universal Telephone (Nasdaq: XING) with a Strong Buy rating and raising its price target to $20.24. The 11-page report by Dutton senior analyst Stanley Ng is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals Financial Portal A website that provides a variety of financial data and information, acting as an information hub for clients who are individual investors requiring timely financial news and data to make their investment decisions. . Qiao Xing Universal Telephone is one of China's largest manufacturers and distributors of telecommunications products. Towards the end of December 2006, the Company started to release detailed quarterly financial statements, which will help improve corporate transparency For other definitions of transparency, see . Corporate transparency is a form of radical transparency : The construct removing all barriers to - and facilitating of - free and easy public access to corporate, political and personal information and the laws, rules, social and enable institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. to better assess the Company's attractive prospects. Even though net revenues for the first three quarters of FY2006 were lower than our expectations, we are happy to see significant improvement in gross, operating and net margins. This positive trend should extend into FY2007. In November last year, the Company completed the acquisition of the remaining 20% equity in Qiao Xing Mobile Communication Co. Ltd. and thus raised its effective interest in CECT CECT Contrast Enhanced Computed Tomography CECT Chemical Engineering and Chemical Technology (its mobile handsets operation) from 74.7% to 93.4%. These positive factors, along with the improvement in margins, had prompted us to significantly raise our EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. forecasts for FY2007 by 16.1% from $2.18 to $2.53. Based on our new EPS estimates for FY2006 and FY2007, we have raised our 12-month price target for the Company from $17.44 per share to $20.24 per share, at which the stock is trading at 12.9 times P/E P/E See: Price/earnings ratio for FY2006 and 8.0 times for FY2007. With more than 50% upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar and improving earnings outlook for the Company, we upgrade our Buy rating to Strong Buy. About Dutton Associates Dutton Associates is one of the largest independent investment research firms in the U.S. Its 31 senior analysts are primarily CFAs and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors. The cost of enrollment in our one-year continuing research program is US $39,500 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $33,000 from the Company for 4 Research Reports with coverage commencing on 5/18/2005. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion