China Tracker - Details for NIVS IntelliMedia Technology (NIVS)

 NIVS IntelliMedia Technology
 Analyst Coverage
2011-03-28Rodman & RenshawDowngradeUnder Reviewn/a
 

We are putting NIV's rating Under Review from Market Outperform. NIV's stock has been halted by the exchange driven by developments leading to the resignation / dismissal of the company's auditor Malone Bailey LLC. NIV's Audit Committee plans to investigate the issues raised by Malone Bailey with the help of an independent third party. The Company is also interviewing candidates to appoint as its independent auditor. We will revisit our rating on getting additional clarity on the issue.

We have tried to get additional color from management on how the company is planning to respond to these developments and work with the exchange to resume trading in its shares. However, we have not received any response yet. We are removing our projections for the company until its SEC filings are made current. 

2010-10-05Rodman & RenshawReiterationOutperform$7.00
 

NIV shares are currently trading at P/E multiples of ~3.6x and ~3.1x to our FY10 and FY11 earnings estimates, and ~0.85x P/B ratio, we conclude that the stock remains attractively priced. We are comfortable maintaining a $7.00 price target for NIV, which translates into P/E multiple of ~12x and ~10x to our estimates for FY10 and FY11.

2010-08-13Rodman & RenshawReiterationOutperform$7.00
 

Management raised its full year revenue by ~$10 MM to the range of $290 MM~$340 MM, compared to previously announced $280 MM~$330 MM. We currently maintain our revenue and net income estimates for 3Q10 at $77.2 MM and $6.8 MM, our EPS estimate for 3Q10 is $0.15. For full year FY10, we expect revenue and net income of $307.7 MM and $26.1 MM, with diluted EPS of $0.58. For FY11, our projections are $340.3 MM, $32.5 MM, and $0.68, respectively. With the stock trading at P/E multiples of ~3.9x and ~3.3x to our FY10 and FY11 earnings estimates, and ~1.2x P/B ratio, we conclude that the stock remains attractively priced. We are comfortable maintaining a $7.00 price target for NIV, which translates into P/E multiple of ~12x and ~10x to our estimates for FY10 and FY11.

2010-07-08Rodman & RenshawReiterationOutperform$7.00
 

We believe the primary near term catalyst for the stock will be its 2Q10 results where investors should see revenues from 3G handset sales to China Telecom materialize (this was previously delayed). We are maintaining our 2Q10 revenue, net income and EPS estimates of $74.9 MM, $6.5MM and $0.16 respectively. Given the strength in China’s consumer electronics and mobile space an earnings beat would not surprise us.

2010-06-18Rodman & RenshawInitiationOutperform$7.00
 

In our opinion, any multiple expansion for NIV should be driven primarily by management’s execution of its strategy, margin improvements and handset driven contract wins. We believe NIV’s new manufacturing facilities, established customer base and profitable margins provide it with enough tools to address any near term competitive threats that may arise. At current levels NIVS is trading at P/E multiples of ~3.6x and ~3.0x to our FY10 and FY11 earnings estimates. We are comfortable assigning NIVS a $7.00 price target, which translates into P/E multiple of ~11.1x and ~9.3x to our FY10 and FY11 estimates.

2010-05-26Red ChipReiterationBuyn/a
 

There is some justification of the market weakness from Europe's trouble spreading to the global economy, but we do not believe it justifies the size of the drop the Shanghai index just experienced, especially not for the drop in NIV stock. NIV has relatively little exposure to European market sales and to North America. We believe that NIV will not have an issue growing revenues significantly this year and maintain our Buy recommendation on the stock

2010-04-26Red ChipReiterationBuy$7.00
 

NIV's fourth quarter revenues and earnings were tremendously strong due in part to the improving confidence of the Chinese consumer, a trend that we expect to continue into 2010. Given that NIV's accountspayable cycleis shorter than thereceivable cycle, workingcapital, although much improved, had been somewhat low for the amount of revenue generated. Therefore, the recent public offering will add substantial breathing room to working capital. We maintain our positive outlook for NIV and are reiterating our Buy recommendation for the stock with a price target of $7.00.

2009-12-29Red ChipReiterationBuy$7.70
NIVS
Retail/Consumer

COVERAGE SUSPENDED OR TERMINATED
 
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Current Price:  n/a
F10k Day (2009-03-13): -100.00%$4.20
2009 Close: -100.00%$2.58
2010 Close: -100.00%$2.26
2011 Close: -100.00%$0.08
High (2012-02-14): -100.00%$0.15
Low (2012-07-27): -100.00%$0.01
Exchange: N/A
Market Capitalization: n/a
Total Shares: 47.97 mill
Float: n/a
Avg Volume: n/a
Last Quarter: 2010-09-30
Revenue (MRQ): 84.40 mill
Net Income (MRQ): 7.93 mill
Op. Cash Flow (MRQ): 1.32 mill
all financial data provided without warranty