To develop LED business of looking into the HK 4

TC Interconnect is principally engaged in the production and sale of LED lighting and PCB products. Group results for brilliant last year, the annual revenue and net profit of 997 million were recorded in HK dollar and 55.17 million, an increase of 34.9%, respectively, and 282%, gross margin increased by 3 percentage points to 15.57%.

LED Group has been actively developing the business, at present, several provinces of China Group has made ​​a lot of LED lights installation contracts, including Lianyungang, Tianjin, Chengdu and Zhengzhou. In addition to ensuring access to contracts, the Group is also committed to research and development of the product, such as recently with AVConcept (00595.HK) a strategic alliance to LED packaging technology R & D cooperation.

In fact, the state promotes the use of energy-efficient lighting, LED lighting, the future prospects should be good. Although the LED lighting business only 11.5% of total revenue, but with the increasing market demand, the estimated future of this business can bring even greater contributions to the company.

Group turnover has a larger downtrend resistance break, then continue to rise, the trend for the better. Valuation, the Group is currently 2010/2011 about 12.5 times forecast earnings, lower than the industry average, investors can designate HK shares drop to around 3.5 to absorb, look 4 the HK dollar stop loss below 3.3.