Cogo Group Inc. has a market cap of $273.7 million; its shares were traded at around $7.75 with a P/E ratio of 19.9 and P/S ratio of 0.9.
Highlight of Business Operations:From 2008 to 2010, our net revenue grew from RMB1,959.5 million to RMB2,589.5 million (USD392.4 million), representing a compound annual growth rate, or CAGR, of 15.0%, and our net income attributable to Cogo Group, Inc. increased from RMB95.9 million to RMB112.4 million (USD17.0 million) during the same period, representing a CAGR of 8.3%.
Leverage our strong customer relationships into new opportunities. In 2008, we began targeting the industrial business end-market to provide industrial solutions for the green energy and auto-electronics sectors. We have since then grown our revenues generated from this market from constituting 4.5% of our 2008 revenue to 17.4% of our 2010 revenue. We anticipate that sales related to the industrial business end-markets will generally have higher profit margins than our digital media and telecom equipment modules related sales, though such higher margins may decline over time as this industry matures. We will also look for opportunities to expand into new end markets that we believe represent significant growth opportunities.
Our broad customer base includes many of the major domestic digital media, telecommunications equipment and industrial business manufacturers in the PRC. In addition, our customers include industry participants supporting these OEMs, such as subsystem designers and contract manufacturers in the PRC, as well as international manufacturers who have begun to manufacture end-products in the PRC for the domestic and international markets. Our three largest customers in the digital media market in terms of 2010 net revenue were ZTE, both a large domestic mobile handset manufacturer and one of the largest telecommunications equipment manufacturers in the PRC, Skyworth Digital, one of the leading digital set-top box manufacturers in the PRC and T&W Electronics, a major broadband terminal equipment and digital consumer electronic provider in the PRC. Our two largest customers from the telecommunications equipment industry in terms of 2010 net revenue were ZTE and Wuhan Research Institute of Post & Telecommunications, a major telecommunications equipment manufacturer in the PRC. Our customers in the industrial business end-market are mainly small and medium enterprises. During 2010, ZTE, Skyworth Digital, T&W Electronics, Wuhan Research Institute of Post & Telecommunications and Yulong, accounted for 26.0%, 7.0%, 5.1%, 4.7% and 2.9% of our net revenue, respectively.
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