SKYWORTH digital products in January sales of 1 million 100 thousand units year-on-year drop 15%

SKYWORTH digital (0751-HK) recently released in January this year, the monthly TV sales rose 0.7% to 1 million 100 thousand units, down 15% year-on-year over the same period, mainly due to Chinese market and overseas market sales of televisions, due to the decline of 15.2% and 13.6% respectively; for the lunar new year in January this year, has become one of the highest sales month this fiscal year in January, China market TV sales monthly increase of 4.3% to 954 thousand.

In January, the company's high resolution TV -CRT, and LCD TV and plasma TV sales (LCD-TV), monthly respectively increased by 0.6% and 3%, respectively, up 15.6% year-on-year and 1.09 times. In January, SKYWORTH's sales fell by a year earlier, as the group focused on China's television business in terms of profitability rather than its market share in the second half of the year.

Market participants believe that, in the longer term, if the company successfully improve its product portfolio, the more the higher the rate of return of LCD TV included. CIMB-GK expects SKYWORTH digital this year's net profit margin of only 1.5%, which means that the company has a higher operating leverage. CIMB-GK is expected to raise the price by promoting the company's interest, taxes, depreciation and amortization rate may profit from fiscal year 06 to 1.7% in fiscal year 07 to 4%; this will make this year's earnings per share from HK $0.064 to HK $0.188 in fiscal year 07 increase. But the key question is whether SKYWORTH digital TV market in the highly competitive success.

SKYWORTH digital also announced that its independent non-executive director of the notice, through its trust Kee Hing Investment (BVI) Ltd, to sell 130 thousand shares per share of $1.12. After the sale, the Soviet Union still holds 100 thousand shares, equivalent to the company's issued share capital of 0.004%. Su also owns 500 thousand equity options.