Company Overview China Radio (2 3 6 9. HK) is a mainland mobile device company that mainly produces and sells smart phones under the “Coolpad” brand. The group's products are mainly supplied to mainland telecom operators, and it has grown into one of the leaders in the smart phone industry in China. Investment summary Since the spread of 3G, smart phones have developed rapidly. The company has also taken this opportunity to launch a full range of high and low end products, fully enter all levels of the smart phone market, and have also achieved rapid development. The compound annual growth rate of the company's operating value reached 77% from 2009 to 2012, and continued to grow rapidly by 55% in the first half of 2013. Mobile phone sales will reach at least 35 million units this year, and the growth rate will still be as high as 67%. The increase in competitiveness of the company is partly due to the weak competitiveness of foreign brands in the middle and low end markets, which has led to the success of local Chinese brands. It also benefits from the company's cost-effective strategy. It mainly uses large-scale effects, passes through effective cost and cost control, and then locks the prices of products of the same quality to a low level in the industry, thus obtaining market approval. This strategy will help the company continue to increase its market share in the increasingly competitive smart phone market and solidify its leading position in the industry. It is expected that in the future, the company will still receive customized orders from operators, and product sales are still expected to grow rapidly. The opening of a Coolpad specialty store and the official opening of the Coolpad online store will also help increase the popularity of Coolpad among a wider range of end users. Its expansion into overseas markets is also expected to increase its overseas contribution from the current 5%. The launch of 4G is about to be catalyzed. China Mobile's 4G terminal development strategy is actually more in line with Coolpad's development strategy focusing on high cost performance and low- to mid-range products. Therefore, 4G commercial expectations will bring relatively optimistic development opportunities to the company. Based on the city planning plan drawn up by the Shenzhen government, the company will rebuild and demolish a number of existing properties. The first phase of the redevelopment plan will involve the demolition of buildings 1 and 6 in Coolpad Information Port and the construction of new office buildings. As of the end of last year, it involved valuations of approximately HK$77.5 million and HK$106 million, respectively. In comparison, at present, the company's annual profit is only around HK$500 million. Therefore, the current property liquidation and liquidation have had a significant negative impact on business performance. Looking at history, the average valuation of a company's price-earnings ratio since 2010 has been 14.8 times. Based on the new development opportunities of 4G, we gave it a valuation level of 15 times EPS in 2013, with a target price of HK$2.7, for an “increase in holdings” rating. “Coolpad” is a mobile phone equipment company in mainland China. It mainly produces and sells smart phones under the “Coolpad” brand. Since the spread of 3G, smart phones have developed rapidly. The company has also taken this opportunity to launch a full range of high and low end products, fully enter all levels of the smart phone market, and have also achieved rapid development.