Small-Cap Focus: China Digital Communications Reaffirms FY 2005 Guidance (CHID)

China Digital Communications (ticker: CHID.ob) is a China-based manufacturer of battery shells for use in electronic products including mobile phones and digital cameras. VP of Corporate Development Roy Teng conducted an interview earlier this week. Here are the key points:

China Digital Communications:

• 600 employees in Shenzhen, China.
• 4 major products.
• 10% market share in the battery shell market in China.
• Competitors – CHID is second largest company in its industry in China.
• Focused on the Chinese domestic market but planning an international rollout. Currently have an office in the US.
• All revenue is currently generated from the Chinese market.

Financial Information:

• Teng reaffirmed previous guidance for FY 2005.
• Revenue of $11.5 million.
• Net income of $2.6 million.

Stock Information:

• Shares outstanding: 54.4 million.
• Float: 13 million shares.

Comment: Teng commented that CHID is the only publicly-traded Chinese company in its industry. He mentioned a number of times that the company is open to acquisitions.

Related:

• All articles on China Digital Communications.
• All stocks covered by The China Stock Blog.

CHID chart.

Disclosure: I am LONG China Digital Communications.