Date
20 October 2017
Wang Yanan says Tongda Group could be worth HK$30 billion (US$4.84 billion) thanks to a market rally that has driven the share price since the beginning of the year. Photo: HKEJ
Wang Yanan says Tongda Group could be worth HK$30 billion (US$4.84 billion) thanks to a market rally that has driven the share price since the beginning of the year. Photo: HKEJ

Tongda on course to become No. 2 in sector, says chairman

Tongda Group Holdings Ltd. (00698.HK) expects to become the second largest mobile parts maker by market capitalization after a recent surge in the stock, according to its chairman.

Wang Yanan said the company could be worth HK$30 billion (US$4.84 billion) thanks to a market rally that has driven the share price since the beginning of the year, the Hong Kong Economic Journal reported Tuesday.  

Tongda’s market capitalization is up 41 percent to HK$8 billion this year, with a price-earnings ratio of 13 times compared with 40 to 50 times multiples for its mainland-listed counterparts.

At that pace, Tongda would be second only to contract manufacturer FIH Mobile Ltd. (02038.HK), formerly Foxconn International Holdings Ltd., and ahead of electric car maker BYD Electronic International Co. Ltd. (00285.HK) which is worth HK$30 billion.

Wang expects sales to expand 30 percent to HK$10 billion in the next three years, boosted by its intelligent hardware which is used in a range of new devices such as Huawei’s smart watch.

Last year, sales were HK$4.79 billion, up more than 40 percent from 2013.

Meanwhile, growing demand for 4G smartphones will help the company expand into overseas markets, where it forecasts solid growth two years down the road, Wang said.

Translation by Vey Wong

[Chinese version中文版]

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