On the back of 31% jump in revenue.
According to Maybank Kim Eng, Skyworth is scheduled to report its full-year results by end of May. It expects the company to report core net profit of HKD1,597m, up 11% YoY on the back of 31% YoY revenue growth to HKD36,927m.
Gross margin is expected to contract by 0.9ppt to 20.2% owing to the faster-thanexpected growth in overseas business (up 94% YoY). SG&A expense to sales ratio is expected to improve by 0.4ppt to 16.2% on increased sales efficiency and effective cost control.
TV shipments to grow in low teens. Following a 24% YoY growth in TV shipments in FY3/13, we expect FY3/14F shipments to increase by 13% YoY to 12.9m units.
Cloud TV will be a key contributor in FY3/14F, recording gross margin of 28% currently. Management expects its cloud TV penetration rate
attain 35% in FY3/14F, compared with 18% in FY3/13.
We believe FY3/14F will be a promotional year for its newly launched 4Kx2K TV, which carries a higher gross margin (above 50%) than cloud TV. Management expects the 4Kx2K TV penetration to be 5-10% by FY3/14F.
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