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TBYH:Supplying The Cellular
Demand
by Glenn Wilkins - AllPennyStocks.com News Reporter
November 22, 2005 (AllPennyStocks.com Media, Inc.) - From the
cute rings that herald their conversations to the high-decibel
volume of the people who engage in those conversations, cell
phones are among the most irritating, and yet, most popular
inventions ever. Everyone, it seems, needs one, sometimes more
than one, for making dinner appointments, arranging business
get-togethers, just to let family and friends know they're on
the way, or just to chat (even in the middle of heavy
traffic). No one needs to explain their appeal, their ease of
operation, their (relative) privacy, and their relative
cheapness to own.
North Americans know the phenomenon of the cell phone well.
The Chinese
appear to know it better, as one of the fastest growing
markets for cell phone use is the country behind the former
"bamboo curtain". China has become the world's largest mobile
communications market, by leaps and bounds, with more than 300
million Chinese using cell phones, a number expected to reach
400 million by year's end. More people use cell phones in
China than live in the United States, and not just for the
above reasons, but also for playing games, downloading music
and all sorts of high-tech activities.
One company that appears to have a foothold of this market
is Shanghai Sunplus Communications Technology, and its parent
company T-Bay Holdings, Inc. (TBYH:OTCBB)
which since September has owned 95 per cent of Sunplus, and
the results out of the cell phone market in China have been
utterly staggering. In a fiscal 2005 ending in March, Sunplus
alone made nearly $34 million in revenues, with nearly $6
million in profit (all figures in U.S. dollars unless
specified otherwise).
It proved no fluke: T-Bay was cheering in late November,
with significant second-quarter earnings growth. The Company
reported net income of $2.5 million in the three months ending
with September, as compared to $185,000 for the same period in
2004. Net income for the six months ended September 30, 2005
was nearly $3.2 million as compared to $1.1 million for the
same quarter the year. The revenues for the three months ended
September 30 were $8.3 million, slightly better than the same
period the year before.
Established in the fall of 2002, Sunplus is a Sino-foreign
joint venture providing total solution and full-range design
services to leading mobile handset brand owners in China. Its
near-200 staff is engaged in providing services including
product design, mechanical design, module architectural
design, manufacturing and technical support. Major customers
of Sunplus include CECT, Panda Electronics and Siemens Mobile.
There are currently four different technology groups under
which most cell phone manufacturers find themselves. Tier one
production involves either placing one's label on the products
or assembling the components from OEMs; tier two includes
product design; tier three involves both, along with design
and manufacturing of the module and hardware platform.
And then, there is tier four, which includes all three
others plus design and manufacturing of the chips. Most cell
phone makers in China are tier one or two, while Sunplus has
the technology to provide three of the four levels of
production.
Given all these events, Sunplus and T-Bay, its parent
company, have big plans beyond conquering the Chinese market,
no small feat in itself. With foreign makes such as Alcatel
and Fujitsu announcing joint ventures to build mobile networks
for third-generation (3G) services in China, Sunplus, not to
be outdone, has launched its own 3G research and development
program, to deliver what Chinese consumers demand in the
latest technology. T-Bay has not ruled listing on the AMEX and
Nasdaq exchanges. Its stock currently lists on the
Over-The-Counter market under the symbol TBYH.
Clearly, the market for this company's product is big and
only growing, and investors who wish to share in this
prosperity may find themselves in luck. As November was easing
to a close, TBYH was in the lower half of a 52-week trading
range that peaked last December at $5.10, sinking to 65 cents
in mid-May. Current levels have the price around $1.80, even
with the glad tidings of good profit results. With all the
recent happenings with TBYH, investors would be well advised
to keep a close eye on this company.
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