Ztc Tele. Share Discussion Threads

[canny lass] 25/4/2007 14:38

Longtech

They are already producing 800K units from current factory.

The new factory in Shenzhen is expected to produce 500K units a month which equates to 6000K units a year.

That coupled with the other factory units equates to 6800K per year

800K to 6800K is 1 : 8.5 increase. as you say massive hike in expected units.

[longtech] 25/4/2007 10:34

Interesting article cootuk.

[cootuk] 24/4/2007 22:36

Just doing a Google trawl and an article from september is interesting.



"ZTC is targeting an annual output of 800,000 units in 2006. ZTC is scheduled to build another factory in Shenzhen. The new facility will be operational in Q1 2007, and is expected to produce at least 500,000 mobile phones monthly."

IF this is true then it really is a massive increase in output from 1m a year to 6m a year.

[cootuk] 18/4/2007 22:19

I guess that going to building their own phones means that they need to fund the purchase of components, rather than have the components paid for by the firm they are outsourcing for. There will probably also be a longer interval between payment as they sell them to distributors, rather than the outsourcer paying for them once built.
Once financing is on an even keel then I expect them to double production capacity by physically adding an extra four lines - this way they can keep lines going for outsourcing as well as their own models and keep them separate.
Then add an extra shift to again double production.

[canny lass] 17/4/2007 10:47

cootuk,

A bit too technical for me. Can anyone shed any light on their intentions?

[cootuk] 05/4/2007 13:34

I emailed the company regarding the expansion of the lines:

"Very pleased to know you're one of ZTC's shareholders.I hope you would have a good return on this investment. In respect to your question, please find my answers as follow,
We plan to install four new assembly lines within the current space in the medium term, we've enough space to meet the expansion requirements. I cannot exactly predict how much will spend on the expansion plan at present, by a rouhg estimate, the total CAPEX on 4 new lines would be around RMB20-30m, but this round of financing would be spent on working capital rather than the expansion according to the budgets.....


Best regards,
James Guo"

[cootuk] 04/4/2007 22:19

I think they are fairly priced around 20p atm.
The real news will be when/if they add the extra production lines as they have the capacity to double production quite easily by adding an extra shift to each line.
We know labour isn't expensive, but decent labour must be in high demand.

Going forward it will be interesting to see how the change in mix from contract manufacture to own brand improves profitability - and, given they are running at capacity right now, how well they ramp up production and sales.

The only detractors are the fierce competition and the general unease after Bodisen. I don't think this will be a SOLA, but could easily do 50% within a year if they ramp up production.

Good enough for me ;-)

[canny lass] 04/4/2007 13:24

All very quiet at the moment.

I had hoped the admission to the market would have been better received.

[monkeywrench] 02/4/2007 09:55

Thanks Longtech, it just saves a bit of time.

[blank frank] 30/3/2007 17:05

There was a small piece on ZTC in yesterday's "Shares" magazine; here are some extracts:-

"ZTC Telecoms calls rural China

If last week's profit warning from Motorola (MOT:NYSE) is any guide, the global mobile phone market remains as competitive as ever. But ZTC Telecommunications' (ZTC:AIM) focus on the rural areas of its domestic Chinese market means the handset designer and assembler could have found a profitable niche. ...

'We are focussing away from the urban areas, where mobile penetration is high and competition is fierce', explains Executive Director Micheal Lin. ... "

"Shares rating": 13 out of 20.

[canny lass] 30/3/2007 13:58

Pity activity is so low. A bit dull at the moment.

[blank frank] 30/3/2007 13:57

Thanks for the ZTC info. posted - looks interesting.

I have posted about the company on the "Telecom Shares You Should Buy" thread:


B.F.

[longtech] 29/3/2007 20:15

Well I never

[monkeywrench] 29/3/2007 17:40

Longtech, any chance of adding the financial stuff
& graphs at the top please ? Its just one click.

[wassapper] 28/3/2007 09:19

Created to show charts. New stock to AIM in March 07

[tt2oo5] 27/3/2007 11:28

I ditto that C L. Entered Cassian Jan 2001. The Son, born Nov 2001, is now in primary school!!!after a long 6yrs wait, our money is now working in the fastest growing economy in the world. Am glad and looking forward to some healthy returns in due time. This one is ever so personal.

[canny lass] 26/3/2007 09:03

I am a Cassian investor and welcome the move. At least, finally after 6 years plus, i am now able to trade the shares. Still holding at moment hoping for something better.

[wantage] 23/3/2007 16:29

I'm informed this one will go a lot higher, a bit of indigestion from old Cassian shareholders who were arm-twisted to buy ZTC, and now running for the door,when they should be loading up.
Let's see the price in a couple of weeks.

[canny lass] 23/3/2007 08:49

I hope this is not the start of a slide.

Most of the trading since admission has been buys, apart from one large sell, and yet the price drops.

[cootuk] 22/3/2007 16:56

I'm in.

Looking closer, on p26 of the admission document -

748930 handsets were produced in the year to 30 June 2006 which is about the capacity of the lines they have working a single shift.
Given their turnover was about 190m RMB this means each phone contributed an average 250 RMB to turnover. This will vary depending on the model produced.
We know they retail the phones for 800-2000 RMB so there's a healthy markup for the retailers.

If they introduced a second shift they could double production if neccessary.
Having four lines means they could gradually phase this in over each line to make the training manageable.

The documents do say they are going to add an extra four lines based on existing infrastructure, so will that be 'eight lines with one shift' or 'four lines with two shifts'?

I wonder how much it costs to equip a line?

[kaffee] 22/3/2007 13:13

Oh. Was expecting it to cover a bit more about ZTC/Praise Ease performance for first half.

Bit of let down.

Anyway, still seems like a worthwhile punt.

[cootuk] 22/3/2007 10:17

Interims out at a wierd time



Just a succint roundup of what's happened in the reverse takeover

[cootuk] 22/3/2007 02:36

On page 33 of the admission document, risk factors :-

"Under PRC laws, the minimum required registered capital for a company such as Zhong Tian operating as a mobile phone handset manufacturer is RMB 200 million. The paid-in capital of Zhong Tian as at the date hereof is RMB 30,348,000. According to Zhong Tian's Articles of Association, Zhong Tian shall contribute its registered capital of RMB 200 million in full by no later than 31 December 2009."

2006 profit after tax was RMB 26m which I believe will be put in the kitty towards this. RMB 200m is about GBP 15m.

With so many shares held by directors this might be another good short term punt until sales and accounts get clearer....unless the chairman does a BODI !

(I've also thrown a post onto PaulyPilot's Pub on TMF - will probably join the party today)

[kaffee] 21/3/2007 19:25

Yes Canny Lass I had a small punt today. Did it show ?!

[tacky] 21/3/2007 16:56

The 'touch' prices look a bit academic,especially the offer.It would seem that most of today's trades are,actually, BUYS (with the likely exception of trades 8&9).The basis for this is that a broker confirmed that "sells" nos.13-16,at least, are infact, BUYS. Also,at about 16.00 hrs,you could actually buy at 19.7p.
So,all in all,from the mkt trading point of view,things look quite promising, IMHO.