Shanghai. July 15. INTERFAX-CHINA - Shenzhen Coship Electronics Co. Ltd., one of China's leading set-top box vendors, has entered into a contract worth RMB 143.36 million ($20.97 million) to supply digital set-top boxes to a Latin American client, according to a July 15 announcement.
Under the contract between Coship and its Latin American client, which was referred to only as EMB in its announcement, Coship will supply all the set-top boxes before Oct. 10 2009. The contract value accounts for approximately 6.79 percent of Coship's total revenue in 2008.
When contacted by Interfax, an unnamed Coship investor relations representative said that EMB is an abbreviation of the Latin American client's company name, but declined to disclose the full name. "The client is a Latin American digital cable TV operator," she said.
Coship began supplying set-top boxes to EMB in October 2008. As of June 30, 2009, the company had sold RMB 120.42 million ($17.61 million) worth of set-top boxes to EMB.
"Coship's overseas business has far exceeded market expectations since 2008. The company distributes set-top boxes either through retail channels or partnerships with overseas digital cable TV operators," Wang Haijun, an industry analyst with China Jianyin Investment Securities, said.
The company's growing overseas business will continue to boost revenue and support the company's performance on the Shenzhen Stock Exchange, according to Wang.
Coship generated revenues of RMB 2.1 billion ($307.18 million) and a net profit of RMB 108 million ($15.8 million) in 2008, up 14.96 percent and 7.48 percent year-on-year respectively, according to the company's 2008 annual report.
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