...As mentioned by the GS analysts in their Equity research report, there is a rosy growth for the coming fiscal years (2012). It is not hard to understand this due to the below 2 reasons: A clear market leader – Building on its 80-year heritage, CTF enjoys the largest market share of 12.6% and 20.1% in China and Hong Kong, respectively. Its retail network of 1,506 stores as of Sept 2011 is also the largest among peers (such as Luk Fook 590.HK) and Chow Sang Sang (116.HK). There is no doubt that CTF can enjoy a high growth when compared with LF and CSS for the 2012. [pic] Source: Frost & Sullivan, AAstocks Vertical integration - CTF produces about 50% of gold and 80% of jewelry products in house. The higher-than-average self-production ratio allows CTF to closely monitor product quality and react to market trend better. CTF currently has 9 jewelry factories and 3 diamond cutting and polishing factories. The costs involved in production will be greatly reduced which can directly and indirectly increase the profit margin. CTF is also a site holder with Diamond Trading Company (DTC), enabling good access to high quality diamonds. Among HK listed jewelry retailers, only CTF and Chow Sang Sang are DTC site holders in Hong Kong. (Source: http://corporate.chowtaifook.com; http://www.diamondworld.net/contentview.aspx?item=2082) Financials Analysis from GS: We look for 40% growth in FY13E and 29% in EY14E CTF has higher earning risk than LF and CSS 10% downside risk...
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...Introduction Google Incorporation is an American search engine company, found by Sergey Brin and Larry Page in 1998. It dominates the market by handling over 70 percent of worldwide online search requests (Hall, 2014). It aims to organize the world’s information and make it universally accessible and useful. Besides, it has an unofficial mission “Don’t Be Evil”, which refers to do good things for the world even though forgoing short term gains (Farfan, n.d.). It successfully expands its business from an online search company to a diverse company. Nowadays, it provides over 50 Internet services and products, such as Gmail, Google drive, Android, operating systems, applications for mobiles and computers. Moreover, when it took over Motorola Mobility in 2012, it began selling hardware, including smart phones and tablets, like Motor X, Nexus 7,etc. (Monhan, 2014). Recently, Google has sold Motorola to Lenovo at a much lower price, $2.91 billion than its purchase cost, $12.5 billion (Pressmen, 2014). Outwardly, it suffers enormous loss on disposal and loss of revenue. Worse still, its third quarter revenue growth rate from July to September in 2014 is far lower than analysts’ anticipation (Guynn, 2014). It may imply that there is stagnation for Google’s earnings. As a result, we will analyze Google based on CVP analysis, cost structure analysis, ratio analysis, and ethical issues and provide recommendations to maintain its sustainability. Financial analysis The quarter report shows...
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