Toro Research is initiating coverage of Dragon Capital Group Corp. with a speculative "Buy" recommendation
21 Setembro 2009 - 8:00AM
PR Newswire (US)
SHANGHAI, Sept. 21 /PRNewswire-FirstCall/ -- Dragon Capital Group
Corp (Pink Sheets: DRGV), a leading holding company of emerging
high-tech companies in China, announced today that Toro Research is
initiating coverage of Dragon Capital Group Corp. (Pink Sheets:
DRGV) with a speculative "Buy" recommendation and a performance
rating of 8, on a scale of 10. According to the report, our
recommendation is based primarily on the company's revenue
performance for the first half of 2009 as it relates to current
market trends in the Asian region, as well as the company's
historical performance and additional outside factors such as
recovering Chinese economy and expanding growth in the country's
Information Technology and Telecommunications sectors. For more
details, please visit http://www.dragoncapital.us/. The following
is an abstract for the research report. Comparative Market Trends:
Dragon Capital Group reported (unaudited) revenue for the second
quarter ended June 30, 2009 was $15.0 million, a 27% increase over
the $11.8 million recorded in the second quarter of 2008. The
company's revenue stream are currently derived from electronics
hardware distribution and network integration. The 27% increase
during the second quarter, as well as 20% for the first six months
of 2009, seems to be defying current market trends in the region,
from even some of largest players in the Information Technology
industry. Hewlett Packard, the world's largest technology company,
with a portfolio that spans printing, personal computing, software,
services and IT infrastructure, reported in July that Second
Quarter revenue declined 10% in Asia-Pacific. When adjusted for the
effects of currency the decline was 5%. IBM reported Second Quarter
Asia-Pacific revenues decreased 7 percent (5 percent, adjusting for
currency) and Dell said Asian revenue was down sharply during the
second quarter, falling 21 percent compared to last year. However,
it is important to note that many of these large Information
Technology companies operating in the region are seeing
improvements in 2009. On August 28th, 2009, Dell, said it hopes to
see revenue grow on an annual basis from 2010, driven by increasing
demand from China and India. "China appears to be emerging fastest
out of the financial crisis," Steve Felice, Dell's president for
small and medium business, told reporters on a conference call.
Industry Overview: Technology and China's Ascent Over the past 30
years, China has been the fastest growing nation in the world,
achieving year-after-year, an average annual GDP growth rate of
around 9% to 10%. And even in the face of one of the deepest global
recessions since World War II, China's economy continues to show
resilience as the country's recovery continues to gather steam. In
July 2009, China reported that Gross-Domestic-Product growth
reached 7.9% in the second quarter, just below the 8.1% goal the
government set for growth in 2009, and well above the 6.1% seen in
the first quarter. This steadfast growth and economic development,
together with a population of well over 1.3 billion people, has
placed China as one of the fastest growing telecommunications and
information technology markets in the world. And the availability
for growth in these sectors seems limitless. Take for example the
Chinese Mobile Telecommunications Industry, one of the largest in
the world. In April 2009, statistics from the country's carriers
showed that China had almost 648 million mobile users after adding
26.7 million subscribers in the first quarter. However, Third
Generation (3G) wireless technology is just now beginning to take
hold, as the government, aimed at restructuring the domestic
telecom industry, awarded 3G licenses to the top three carriers in
January 2009. The move has since then spurred a wave of new
investments, and aggressive development and deployment of
telecommunication infrastructure throughout the country.
Conclusion: As Dragon Capital Group continues to focus on the
development of its subsidiaries, and capitalize on their individual
innovative technological offerings, the company seems to be working
towards taking a commanding position in China's high-tech sector in
2009 and beyond. The company's established operating history and
proven track record of success has been evident, especially 2009,
as it continues to post increases in sales at time when most others
are reporting significant declines throughout the region. And
finally as China continues to lead the way in economic recovery,
and sign of improvements continue to materialize, we believe that
Dragon Capital should be able to capitalize on the tremendous
growth potential of the economic rebound. However, it is important
to note that, while the upside potential certainly exist for
(OTC:DRGV), the company does face general business and operating
risks, such as the competitive nature of the Information Technology
and Electronics industry, a continued downturn or stagnation in the
economic environment of China, changes in the political and
economic policies and reforms of the Chinese government, as well as
the fact that most of Dragon Capital's subsidiaries and assets are
based in China, outside the jurisdiction of any legal system of the
US. Investors are urged to be cautious and perform their own due
diligence before making any investment in Dragon Capital Group
(OTC:DRGV) About Dragon Capital Group Corp. Dragon Capital Group
Corp (Pink Sheets: DRGV) is doing business in China through its
subsidiaries. Dragon was established to serve as a conduit between
Chinese high-growth companies and Western investors. DRGV functions
as an incubator of high-tech companies in China, offering support
in the critical functions of general business consulting, formation
of joint ventures, access to capital, merger acquisition, business
valuation, and revenue growth strategies. DRGV has developed a
portfolio of high-tech companies operating in China. For more
information about DRGV, please visit http://www.dragoncapital.us
Safe Harbor Statement Certain statements set forth in this press
release constitute "forward-looking statements". Forward-looking
statements include, without limitation, any statement that may
predict, forecast, indicate, or imply future results, performance
or achievements, and may contain the word expressions of similar
meaning. Such statements are not guarantees of future performance
and are subject to risks and uncertainties that could cause the
company's actual results and financial position to differ
materially from those included within the forward-looking
statements. Forward-looking statements involve risks and
uncertainties, including those relating to the Company's ability to
grow its business. Actual results may differ materially from the
results predicted and reported results should not be considered as
an indication of future performance. DATASOURCE: Dragon Capital
Group Corp. CONTACT: Dragon Capital Group, Investor Relations, Gary
Liu, (954) 363-7333, ext. 318
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