chinaman711
01-17-2007, 09:10 AM
Press Release Source: Qiao Xing Universal Telephone
Dutton Associates Announces Investment Opinion: Qiao Xing Universal Telephone Raised To Strong Buy Rating In Update Coverage By Dutton Associates
Tuesday January 16, 12:15 pm ET
EL DORADO HILLS, Calif.--(BUSINESS WIRE)--Dutton Associates updates its coverage of Qiao Xing Universal Telephone (Nasdaq: XING - News) 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.
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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 and enable institutional investors 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 (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 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 for FY2006 and 8.0 times for FY2007. With more than 50% upside potential and improving earnings outlook for the Company, we upgrade our Buy rating to Strong Buy
Dutton Associates Announces Investment Opinion: Qiao Xing Universal Telephone Raised To Strong Buy Rating In Update Coverage By Dutton Associates
Tuesday January 16, 12:15 pm ET
EL DORADO HILLS, Calif.--(BUSINESS WIRE)--Dutton Associates updates its coverage of Qiao Xing Universal Telephone (Nasdaq: XING - News) 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.
ADVERTISEMENT
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 and enable institutional investors 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 (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 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 for FY2006 and 8.0 times for FY2007. With more than 50% upside potential and improving earnings outlook for the Company, we upgrade our Buy rating to Strong Buy