Posted by
chinambilephone on Friday, November 27, 2009 8:35:34 PM
RIM is expected to post higher earnings growth. It reported a net profit of $1US.89 billion in FY2009 ended February, on revenue of $11US.07 billion. Consensus polled by Bloomberg projected the china mobile phone company's earnings to hit $2US.38 billion in FY2010 and $2US.82 billion in FY2011.
RIM was traded at 15.14 times estimated earnings for FY2011 ended February, based on its shares listed on Nasdaq that were traded at $74US.27 apiece early last Thursday. The company was recently named the world's fastest-growing company by Fortune magazine in terms of growth on a combination of profits, turnover and investment returns over three years.
Apple, which is also listed on Nasdaq, was traded at 24.31 times estimated earnings for FY2010 ended Sept 30, at its price of $165US.72 early last Thursday. The company's net profit totalled $4US.83 billion for FY2008 ended September, on revenue of $32US.48 billion. Projections are for Apple to post TV cell phone profit of $5US.31 billion in FY2009 and $6US.33 billion in FY2010.
In comparison to the smartphone manufacturers, China Mobile, which traded at $74HK.70 on the Hong Kong Stock Exchange last Thursday afternoon, was valued at only 11.6 times its estimated earnings of RMB115.26 billion for FY2009 ended Dec 31, and 11.19 times estimated earnings of RMB117.95 billion for FY2010. But given its slow growth, as projected by analysts, it seems smartphone manufacturers are a better bet.
China's Minister of Industry and Information Technology Li Yizhong appears more bullish about China Mobile's 3G prospects. He recently told reporters he expects the company to sign up 80 million 3G iphone clone subscribers within the next two to three years.
But even if this happens, it will be a bigger boost for smartphone makers as it means greater shipment volumes for the high-margin devices.