Updated Jul 15, 2001
| Years | Mar
01 |
Mar
00 |
Mar
99 |
Mar
98 |
Mar
97 |
Mar
96 |
Mar
95 |
96-00
5-yr Annual |
98-00
3-yr Annual |
| Revenues (Million HK$) | 2,416 | 1,558 | 975 | 899 | 734 | 513 | 410 | ||
| Revenues Growth % | 55 | 60 | 8 | 22 | 43 | 25 | 36 | 39 | |
| Gross Margin % | 31 | 30 | 27 | ||||||
| Net Income (M HK$ excl special income) | 409 | 259 | 125 | 111 | 102 | 56 | 62 | ||
| Special Income (Million HK$) | 178 | ||||||||
| Earning Growth % | 58 | 107 | 12 | 9 | 82 | -10 | 48 | 54 | |
| Net Profit Margin % | 17 | 19 | 13 | 12 | 14 | 11 | 15 | ||
| Return on Equity % | 20 | 21 | 15 | ||||||
| Debt / Equity | 0.36 | 0.15 | 0.52 | ||||||
| Cash Flow / Debt | |||||||||
| EPS ($, excl special income) | 0.862 | 0.486 | 0.256 | 0.283 | 0.304 | 0.17 | |||
| Operating Income (Million HK$) | 569 | 328 | 163 | 134 | 106 | 57 | |||
| Operating Margin | 24 | 21 | 17 | 15 | 14 | 11 | |||
| Operating Income Growth % | 73 | 101 | 21 | 26 | 86 |
Profile
- Established in 1988 and listed in 1993
- The largest laminate manufacturer for the market of China and Hong
Kong
- One of the world's lowest cost laminate producers
- Employee: 3,000
- 11 plants in China
- 88% of its sales is in China
- Laminates is the basic material for Printed Circuit Board (PCB)
Products
| Products | 2001 Sales
% of Total |
Growth | 2001 Op. Profit
% of Total |
Growth |
| Laminates | 83% | 63% | 87% | 74% |
| Specialty Chemicals | 9% | 39% | 6% | 228% |
| Others | 8% | 13% | 7% | 25% |
Is it a monopoly-type business?
In the global market, it is not. The largest
manufacturer is a German company called Isola, with annual sales approx.
US$ 1 billion. Isola also has factories in China and Phillippines,
However, Kingboard is the largest laminate manufacturer
in China. It has the advantage of its early presence. Because
of cheap labour, it is one of the lowest cost manufacturer.
Such advantage is facing a new challenge.
Its competitors, like Taiwan makers Uniplus, Elite and Nan Ya, have all
established factories in China. How Kingboard responds to the competition
is the main issue ahead.
Major Competitors
| Company | Country | Sales in 2000 | Remarks |
| Isola | Germany | US$ 1 billion | 1 factory in China |
| Park Electrochem | US | US$ 522 millions | |
| Uniplus Electronics | Taiwan | US$ 147 millions | 2 factories in China |
| Elite Materials | Taiwan | ||
| Nan Ya | Taiwan |
Is it in a great potential market which could lead to a sizable increase
in sales for at least several years? Does it have a strong demand?
How big is the market?
As a result of computer and internet revolution,
there is a great demand of electronic products like computer, PDA, cell
phone, etc. Many of these are new products at their infant stage.
Laminates are expected to have an annual growth of 4% through 2004.
Being an essential material, the demand for laminates will still be growing
strongly.
Besides a growing industrial base for electronics,
the China market itself is also growing rapidly. The local demand
of electronics and computer products is very great.
There may be a temporarily slow growth due to the
overheat expansion in 2000. However, in the long term, it is still
a growing industry.
Does the management have a determination to continue to develop products that will further increase total sales when the growth potentials of currently attractive product lines have largely been exploited?
What makes the company different from its competitors? How does the company sustain its competitive advantages?
How effective are the company's research and development efforts in relation to its size?
Does the company have an above-average sales organization?
Does the company have worthwhile profit margin?
What is the company doing to maintain or improve profit margin?
Does the company have outstanding labor and personnel relations?
Does the company have outstanding executive relations?
Does the company have depth to its management?
How good are the company's cost analysis and accounting controls?
Does the company have a short-range or long-range outlook in regard to profits?
Will the growth of the company require sufficient equity financing so that the larger number of shares then outstanding will dilute existing shares?
Does the management talk freely when things are going well, but "clam up" when troubles and disappointments occur?
Does the company have a management of unquestionable integrity?