English | 简体中文 | 繁體中文 | 한국어 | 日本語
Thursday, 16 October 2014, 07:38 HKT/SGT
Share:
UBS Published Dongpeng Site Visit Report
Acquisition of Innoci to Further Develop Bathroom Products Business and Propel Overall Business Growth

HONG KONG, Oct 16, 2014 - (ACN Newswire) - As of 2012, Dongpeng Holdings Company Limited ("Dongpeng", Stock Code: 3386) was the largest ceramic tile company in China by retail sales value*, and was ranked No.1 in both China's overall ceramic tile market and high-end ceramic tile segment by market share. On 15 October 2014, UBS published its site visit report to Dongpeng and indicated Dongpeng's acquisition of Guangzhou Yinai Sanitary Products Co., Ltd. ("Innoci") in July 2014 has expanded its business in the mid to high-end bathroom product market, propelling Dongpeng's overall business growth.

UBS reported that Dongpeng's brand is widely recognized in China's home decoration market and enjoys competitive advantages as the market leader. The policy shifts in China's property market (including the relaxation of home purchase restrictions and relaxation of mortgage approvals etc.) boost the property transaction volume, which could in turn increase demand for ceramic tiles and bathroom products. UBS believes Dongpeng's strategic acquisition of Innoci has brought new momentum to its expansion in the contemporary and premium design market sector. The outstanding product design capabilities and brand positioning of Innoci, combined with the production capacity, distribution and logistics advantages of Dongpeng, will propel the long-term steady development of Dongpeng's bathroom products business and create greater synergy between its ceramic tile business and bathroom products business.

UBS pointed out that China's ceramic tile production market is highly fragmented. The slower growth rate of the Chinese property market is expected to speed up the consolidation of China's ceramic tile and bathroom product market. With the superior Dongpeng brand built from more than 40 years of operations, technological innovation and new product design and development capabilities as competitive edges, Dongpeng is more likely to gain larger market share in this consolidation and continue to benefit from the high demand created by urbanisation in China.

UBS indicated that the projected PE of Dongpeng is only 6x (Bloomberg consensus), while the Company reported 48% YoY net profit growth in 1H2014.

Appendix
*These figures are based on an independent market research report commissioned by Dongpeng and prepared by Frost & Sullivan, an independent research firm, in October 2013, and statistics issued by the China Industrial Information Issuing Center for the year 2013.

Topic: Press release summary Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network


Copyright © 2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

 

Latest Press Releases
Singapore's most anticipated skyhigh destination C.O.T.U officially opens in iconic Marina Bay this holiday season   
Dec 24, 2024 16:10 HKT/SGT
VAP Group's Global AI Show Explores the Future of AI with Over 3,000 Participants  
Dec 24, 2024 15:40 HKT/SGT
The 25th World LNG Summit & Awards will take place on 2-5 December 2025 in Istanbul, Turkiye  
Dec 24, 2024 15:30 HKT/SGT
Beyond Work Unveils Next-Generation Memory-Augmented AI Agent (MATRIX) for Enterprise Document Intelligence  
Dec 24, 2024 15:20 HKT/SGT
Hitachi delivers a turnkey rail solution for Ho Chi Minh City's first urban railway Line 1 in Vietnam  
Tuesday, December 24, 2024 12:19:00 PM
Nissan and Honda sign MOU to consider business integration  
Tuesday, December 24, 2024 10:18:00 AM
Olympus Named to Dow Jones Sustainability World Index for the Fourth Consecutive Year  
Tuesday, December 24, 2024 10:00:00 AM
Nissan, Honda, and Mitsubishi Motors sign MOU on collaborative considerations  
Tuesday, December 24, 2024 9:54:00 AM
GAC Honda Begins Operation of New Energy Vehicle (NEV) Production Factory in Guangzhou, China  
Tuesday, December 24, 2024 9:23:00 AM
Sarawak Premier Makes Inaugural Visit to Mitsubishi Power's Takasago Hydrogen Park  
Tuesday, December 24, 2024 9:10:00 AM
More Press release >>
 Events:
More events >>
Copyright © 2024 ACN Newswire - Asia Corporate News Network
Home | About us | Services | Partners | Events | Login | Contact us | Cookies Policy | Privacy Policy | Disclaimer | Terms of Use | RSS
US: +1 214 890 4418 | China: +86 181 2376 3721 | Hong Kong: +852 8192 4922 | Singapore: +65 6549 7068 | Tokyo: +81 3 6859 8575