LED - will these light up the portfolio?

to show the size of LED market (Shanghai): nov 2006

Neo-Neon Holdings, a world leader in decorative lighting, announced the pre-marketing of its US$300 million IPO, as it plans to list shares on the Hong Kong Stock Exchange next month. The company expects its 2006 profit to post a growth of 82 percent, ascribing the surge to the sale of more high-margin products and cost cutting. ICEA and Deutsche Bank are the listing sponsors while BNP Paribas is one of the arrangers. Market sources said that LED lighting products have profit margins of more than 50 percent, compared with 30 percent for traditional incandescent lighting products. The company boosted the proportion of LED products to 31 percent of total sales in the first half of this year, from 2.7 percent in 2003. BNP said LED product share of sales should reach 58 percent in 2008. BNP estimates the company's profit will be HK$259 million (US$33.3 million) this year, up 82 percent from HK$143 million (US$18.4 million) a year ago, with turnover rising 47 percent to HK$1.4 billion (US$180.4 million) from HK$971 million (US$125.1 million) previously. The firm distributed 46 percent of its earnings as dividends last year, leaving about HK$186 million (US$24.0 million) net cash balance at the end of the year. BNP estimated sales from China would jump to around 20 percent of the firm's turnover in 2008 from 7 percent in 2005.

Chinese Tech Stock Weekly Report
Posted on Nov 27th