![]() ![]() Sales and Marketing expenses as a percentage of total revenue have dropped as revenues have increased and its Sales and Marketing efficiency rate was a very high 47x. The firm’s financials show a return to topline revenue growth.įree cash flow for the six months ended Septemwas negative ($988,304). investment capital to fund its growth and expansion efforts. Listed underwriters of the IPO are Boustead Securities and Brilliant Norton Securities Company. Management’s presentation of the company roadshow is not available. Per the firm’s most recent regulatory filing, the firm plans to use the net proceeds as follows: No existing shareholders have indicated an interest to purchase shares at the IPO price.Īssuming a successful IPO at the midpoint of the proposed price range, the company’s enterprise value at IPO would approximate $40 million.Įxcluding effects of underwriter options and private placement shares or restricted stock, if any, the float to outstanding shares ratio will be approximately 45.36%. UTME intends to sell 3.75 million shares of common stock at a proposed midpoint price of $4.50 per share for gross proceeds of approximately $17 million, not including the sale of customary underwriter options. UTime’s recent financial results can be summarized as follows:Ī swing to operating profit and comprehensive incomeīelow are relevant financial metrics derived from the firm’s registration statement: This represented an annual average growth rate of 5.0% from 2014 to 2019 and a 3.2% growth in 2019.Īlthough the industry has grown rapidly from 2013 forward as a result of the popularity of the 4G mobile phone standard, growth has slowed more recently as the market has attained saturation.Īlthough phone manufacturers are optimistic about the prospects for 5G rollouts, a transition to that standard will likely occur over several years. Source: Company registration statement Market & CompetitionĪccording to a 2019 market research report by IBISWorld, the market for mobile phone manufacturing in China was expected to reach $232 billion in 2019. The Selling efficiency rate, defined as how many dollars of additional new revenue are generated by each dollar of Selling spend, was 47.0x in the most recent reporting period, as shown in the table below: Selling expenses as a percentage of total revenue have been uneven as revenues have fluctuated, as the figures below indicate: UTME has relationships with companies such as TCL Communication Technology, Haier Electronics and Quality One Wireless. The firm sells primarily as an OEM/ODM contract manufacturer to brands that are active in emerging markets The company is majority owned and controlled by Chairman Bao, who owns 96.95% of company stock pre-IPO. Minfei Bao, who has been with the firm since 2008 and was previously general manager of United Creation Technology, Ltd., a mobile phone manufacturer. Management is headed by Chairman and CEO Mr. The company is also developing its own branded product offerings through its UTime and Do brands. Shenzhen, China-based UTime was founded to provide a range of design, development, production and sales of lower cost mobile phones, accessories and related electronic products for sale to emerging markets and the entry level within developed markets. UTME operates in a highly competitive, low margin business requiring scale, which it doesn’t have. The company designs and manufactures low cost mobile phones and related accessories. UTime ( NASDAQ: UTME) has filed to raise $17 million from the sale of its common stock in an IPO, according to an amended registration statement. Photo by Marko Geber/DigitalVision via Getty Images Quick Take ![]()
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