Tag Archives: Spreadtrum

News Digest: December 23, 2011

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The following press releases and media reports about Chinese companies were carried on December 23. To view a full article or story, click on the link next to the headline.

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◙ Post Office Aims to Split Off Courier Delivery Logistics Unit for IPO (Chinese article)

◙ Yahoo (Nasdaq: YHOO) to Weigh Deals For Asian Assets: Sources (English article)

◙ Spreadtrum Communications (Nasdaq: SPRD) Declares Quarterly Cash Dividend (PRNewswire)

◙ Joy Global Approved for Strategic Investment in Int’l Mining Machinery (HKEx: 1683) (Businesswire)

◙ Shanda (Nasdaq: SNDA) Cloudary’s Hongxiu Reaches RMB 100 Mln in 2011 Revenue (English article)

News Digest: December 17-19, 2011

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The following press releases and media reports about Chinese companies were carried on December 17-19. To view a full article or story, click on the link next to the headline.

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◙ Sina (Nasdaq: SINA) Announces New Rules on Microblogging by Beijing Municipal Government (PRNewswire)

◙ Alibaba’s $4 Billion Loan Takes Shape (English article)

◙ Spreadtrum Communications (Nasdaq: SPRD) Announces Share Repurchase Program (PRNewswire)

◙ Youku (NYSE: YOKU), Tudou (Nasdaq: TUDO) Trade Copyright Infringement Allegations (English article)

◙ HNA Group Completes $1.05 Billion Purchase of GE Container-Leasing Venture　（English article)

Soufun Looks For More Support With New Dividend 搜房网借新派息计划寻求支撑股价

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When does a 31 percent dip in your share price look good? When your rivals’ share prices have fallen by even more, or at least that seems to be the thinking at real estate services firm Soufun (NYSE: SFUN), which has just announced its second dividend in the last 4 months amid a broader sell-off that has seen many US-listed China stocks tumble by even more in the last few months. Soufun’s latest plan looks even more attractive now than the first plan announced in August (previous post), as the payout amount will remain at $1 per American Depositary Share, translating to a return of about 7.5 percent based on the company’s latest share price. (company announcement) That’s up from a payout ratio of about 5 percent for the August dividend, when the company’s shares were quite a bit higher. A growing number of US-listed companies have tried the dividend approach, including chipmaker Spreadtrum (Nasdaq: SPRD) and online game specialists Giant Interactive (NYSE: GA) and most recentlly Shanda Games (Nasdaq: GAME), betting that cash payouts will appeal more to investors than traditional share buybacks. So how effective is the dividend strategy? A quick comparison shows that while Soufun’s shares are down 31 percent since it announced its first dividend, its closest rival, E-House (NYSE: EJ) is down by an even bigger 42 percent over the same period, showing the strategy may have some effect. Of course, Soufun’s recent posting of solid third-quarter results, even in the face of China’s rapid real estate slowdown, may also be helping its stock. (previous post) For all of those reasons, Soufun may indeed look like a nice play going forward. Dividends may be good for short-term investors, helping to support stock prices and provide some definite returns in uncertain markets. But for longer term investors, there’s still no replacement for solid company fundamentals and growth prospects, meaning it still pays to check a company’s bottom line no matter how nice the dividend.

Bottom line: The dividend approach being tried by many US-listed China firms is providing some short-term support for share prices and quick returns for investors.

Related postings 相关文章:

◙ Shanda Plays Games With Big Dividend 盛大游戏寄望高额分红计划提振股价

◙ Investors Pocket Spreadtrum, Giant Dividends and Run

◙ Sofun’s New Strategy: Dividend Wave Ahead? 搜房网新策略：中国概念股派息潮即将来临？

Spreadtrum, Mediatek in Cheap Smartphone Plays

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Two chip designers, Taiwan’s MediaTek (Taipei: 2454) and China’s own Spreadtrum (Nasdaq: SPRD) are looking like interesting bets these days, as they seek to profit from burgeoning demand for cheap smartphones in emerging markets like China and India where carriers are trying to boost recently built 3G networks. In fact, MediaTek has always been a specialist at cheap cellphone chips, allowing it to play at the low end of a market otherwise dominated by the likes of Qualcomm (Nasdaq: QCOM) and Texas Instruments (NYSE: TXN). It entered the smartphone market with an Android-based chip earlier this year, and, after landing supply deals with names like Lenovo (HKEx: 992) and ZTE (HKEx: 763; Shenzhen: 000063) is reportedly in talks for another big deal that could see it supply Huawei, another leading cheap smartphone maker. (English article) Meantime, Spreadtrum is making its own interesting cheap smartphone play, focusing on the very limited market making chips for the homegrown Chinese 3G standard known as TD-SCDMA, whose only major proponent is China Mobile (HKEx: 941; NYSE: CHL). Spreadtrum has just announced its launch of an ultra-cheap chipset that will allow handset manufacturers to make TD-SCDMA smartphones for as little as $40 each, meaning such phones could easily retail below the $100 mark considered a key threshold for cost-conscious middle- to lower-end users. (company announcement) A lack of compelling handsets has been a major factor hindering China Mobile’s efforts to build up its 3G business to date. (previous post) The availability of a wide range of ultra-low-cost TD-SCDMA phones, assuming Spreadtrum can find customers for its new chips, could be just the catalyst that China Mobile needs to breath some new life into its 3G network. Equally important for Spreadtrum, its development of a TD-SCDMA smartphone chip seems to indicate it is also dedicated to the standard’s 4G successor, TD-LTE, which could put it in a strong position to be a big supplier in chips for that standard which is already being tested out in China and a number of other major markets, including Japan and India.

Bottom line: MediaTek and Spreadtrum are looking like strong bets in the cheap smartphone chip market, which should see strong demand from 3G and 4G consumers in emerging markets.

Related postings 相关文章:

◙ Spreadtrum Takes Smart Gamble on China 3G

◙ China Mobile: Poor 3G Approach Yields Weak Results 中移动3G策略不当 拖累公司三季度业绩

◙ Baidu, ZTE Earnings: More of the Same 百度和中兴财报：看上去没变化

News Digest: December 9, 2011

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The following press releases and media reports about Chinese companies were carried on December 9. To view a full article or story, click on the link next to the headline.

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◙ Formation of National Cable TV Company Delayed to End 2012 (Chinese article)

◙ Starbucks (Nasdaq: SBUX) Enters Five New Cities Across Mainland China (Businesswire)

◙ Qihoo 360 (NYSE: QIHU) Rejects Citron Research’s Accusations (PRNewswire)

◙ Spreadtrum (Nasdaq: SPRD) Makes Low-Cost Android TD-SCDMA Chip, Reaffirms Q4 Outlook (PRNewswire)

◙ New China Life raises $1.9 billion in dual IPO: IFR (English article)

Investors Pocket Spreadtrum, Giant Dividends and Run

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It’s going to take more than dividends and buy-backs to win investors back to China stocks, or at least that’s the message that markets are sending to online game operator Giant Interactive (NYSE: GA) and cellphone chipmaker Spreadtrum (Nasdaq: SPRD). Let’s look at Giant Interactive first, which raised investor wrath last month when it disclosed it had made investments in the insurance sector completely unrelated to its core online games business, and then forced out its CFO and offered a massive dividend worth more than 30 percent of its share price to try and make amends. (previous post) Its share moved up marginally when it announced the dividend, and then plummeted after it made the award on September 11, falling from $7.80 the day before it distributed the $3 per share award to a close of $4.61 afterwards. Since then, its shares have tumbled even further to its latest close of $3.48 per share, about a third of their 52 week high. Now the company has just announced a share buy-back, again with little affect on its price. (company announcement) Clearly investors are still not convinced that this company is anything more than the personal play toy of its chairman Shi Yuzhu, reflecting the broader credibility crisis facing US-listed China stocks. Spreadtrum’s case looks similar, though not quite as extreme. After successfully fending off a short-seller attack in June (previous post), the chipmaker has now announced it will award a modest quarterly dividend of 5 cents per American Depositary Share, equaling an annual yield of just 1 percent if it really keeps paying the dividend on a quarterly basis. (company announcement). Not surprisingly, shareholders greeted the news with indifference and perhaps even a little disdain, bidding Spreadtrum shares down marginally in Monday trade, even as the Dow and Nasdaq both rallied more than 2 percent. In Spreadtrum’s case the issue is clearly size, as the dividend is nearly meaningless even though the company itself looks strong. In Giant’s case much more fundamental issues are at stake, namely its lackluster position in the China’s tough online gaming space and its credibility in general. In both cases, investors are saying it will take stronger performance, and not just quick dividends, to win back their interest.

Bottom line: The dividend strategy from several US-listed Chinese companies is falling flat, with investors looking for stronger bottom lines before returning to these firms.

Related postings 相关文章:

◙ Giant Fires CFO, Offers Dividend to Placate Investors 巨人网络CFO辞职 高额分红以安抚投资者

◙ Spreadtrum On Cusp of Putting Out Short-Seller Fire 展讯力抗卖空方

◙  Sofun’s New Strategy: Dividend Wave Ahead? 搜房网新策略：中国概念股派息潮即将来临?

Spreadtrum Takes Smart Gamble on China 3G

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Having survived an attack by short-sellers, cellphone chip designer Spreadtrum (Nasdaq: SPRD) is broadening its smart move into smartphones, this time by taking a big gamble on TD-SCDMA, the homegrown third-generation (3G) mobile standard being developed and promoted by China Mobile (HKEx: 941; NYSE: CHL). Many will recall that this company made headlines earlier this year when short sellers attacked it over questions about its inventory — questions the company later successfully fended off. (previous post) In the meantime, the company said it was placing its bets for the future on smartphones (previous post), which have shown huge growth potential as celllphones become more and more like wireless computing devices. In the latest wrinkle, the company has disclosed that it now controls more than half of the market for chipsets used in smartphones that run on TD-SCDMA, the homegrown Chinese 3G wireless standard being used by China Mobile. (company announcement) If you had asked me 3 months ago what I thought about this, I would have said that Spreadtrum was wasting its time and money, as China Mobile was showing little interest in promoting its 3G service, which many considered unreliable due to the untested nature of the technology. But in just the last two months, China Mobile has suddenly shown a new interest in promoting the service, making Spreadtrum’s bet suddenly look much better. Its investment in TD-SCDMA will also inevitably give it a headstart in developing chipsets for the standard’s 4G successor, TD-LTE, which China Mobile is actively developing and could launch commercially as soon as next year. Many carriers outside China are also taking a serious look at TD-LTE, which could further boost the market for this standard. Of course, other chipset makers will probably see what’s happening and jump on the TD bandwagon, but Spreadtrum’s early entry into this space should give it a clear advantage for at least the next 1-2 years.

Bottom line: Spreadtrum’s aggressive push into TD-SCDMA looks like a smart move in light of China Mobile’s recent promotion of its 3G service.

Related postings 相关文章:

◙ China Mobile Nears iPhone Deal, Continues 4G Press 中移动iPhone协议近尾声 加紧4G攻势

◙ Spreadtrum On Cusp of Putting Out Short-Seller Fire 展讯力抗卖空方

◙ Spreadtrum Steps Up Smart Drive 展讯通信向智能手机市场迈出精明一步

Sofun’s New Strategy: Dividend Wave Ahead? 搜房网新策略：中国概念股派息潮即将来临？

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Several US-listed China firms have launched recent share buybacks to boost stock prices hit by the ongoing confidence crisis (previous post), but real estate services leader Soufun (NYSE: SFUN) is taking a different and interesting approach by offering a dividend, in what could be a sign of things to come. (company announcement) Soufun said it will pay a dividend of $1 per share under its new plan, equating to a generous return of nearly 5 percent based on the company’s share price when the plan was announced. Despite rising as much as 5 percent on Monday after the announcement, Soufun shares ended the day down 2 percent, reflecting both investor skepticism about China stocks as well as Soufun’s own prospects due to a pending correction in China’s overinflated real estate market. The tepid response aside, this kind of move looks much smarter to me than previous buybacks launched by the likes of Spreadtrum (Nasdaq: SPRD) and Dangdang (NYSE: DANG), as it provides some concrete rewards for investors compared with the less tangible rewards from a share buyback. Many of the larger New York-listed Chinese firms are sitting on huge cash piles already that they don’t know what to do with, and this kind of return of money to investors — especially if Soufun decides to make its dividend an annual event — could be just the kind of reassurance investors would like to see to give them at least a little protection against economic and accounting concerns. While initial response to the dividend seems a bit disappointing, I’d look to see how Soufun’s shares fare over the next week or two before passing final judgment. If the stock outperforms the market, which seems like a strong bet, I wouldn’t be surprised to see some of the other major US-listed Chinese firms with big cash reserves launch their own dividend plans, in an effort to win back skeptical investors with similar cash returns.

Bottom line: Soufun’s new dividend plan, providing an immediate 5 percent return to investors, could lead to a new round of similar dividends from US-listed Chinese firms looking to prop up their shares.

多家在美上市的中国企业纷纷回购股票，以提振遭信任危机重创的公司股价。但中国房地产服务领头羊搜房网<SFUN.N>采取的策略与众不同，很有意思：派息。搜房网宣布现金派息计划，决定每股普通股派发一美元股息，按照计划宣布时公司的股价，此举相当於近5%的收益。尽管派息计划宣布後，搜房网股价周一上扬5%，但当天其股价收跌2%，既反映出投资者对於中国概念股的忧虑，也反映出对於搜房网前景的怀疑。尽管市场反应不温不火，我认为这种策略要比之前展讯通信<SPRD.O>和当当网<DANG.N>等企业的回购做法聪明得多。因为派息对投资者的回报更为直接，而股票回购则没有那麽明显。很多在纽约上市的中国较大企业根本不差钱，而且不知道钱怎麽花。而这种回馈方式可能正是投资者所需的一种安慰，在经济与会计忧虑中至少对投资者起到一点保护作用。虽然市场对派息的初步反映有些令人失望，但我会密切关注未来一到两周搜房网的股价表现，然後再做定论。如果搜房网跑赢大盘，一些其他在美上市的中国企业也推派息计划，让疑虑重重的投资者重拾一些信心，我不会感到意外。

一句话：搜房网的派息计划可能会令其他在美上市的中国企业跟进，掀起一股派息潮。（

Related postings 相关文章:

◙ 55tuan Scraps Listing Plan After Banks Get Cold Feet 各投行临阵退缩 “窝窝团”放弃赴美上市

◙ China NY Stocks on Cusp of Comeback? 中国赴美上市公司股票即将触底反弹？

◙ China Confidence Crisis Separates Wheat from Chaff 中国企业信任危机 对不同公司各有利弊