Company Overview

Times Group Holdings Co., Ltd. (Times Group) is mainly engaged in developing and manufacturing handbags, small leather goods and travel goods for leading international luxury brands such as Coach, Fossil, Michael Kors, Lacoste and Prada, and high-end travel brands such as Tumi. 2012 2012 Financial Highlights Annual Performance Highlights

Revenue increased approximately 33.9% year over year to HK$3,338.2 million.

The overall gross margin remained at 22.2%.

Direct labour costs rose 40.8% year-on-year to approximately HK$538.7 million, accounting for 16.1% of revenue. (FY2011:15.3%)

As of June 30, 2012, the total production capacity reached 20.0 million pieces, and the production utilization rate was about 80%.

Net revenue was approximately 375.3, an increase of 18.7% over the previous year.

Summary

We forecast Era Group's earnings per share of HK$0.42 in 2013 and a projected price-earnings ratio of 12 times. The current price of Times Group Energy is HK$4.73, and the estimated price-earnings ratio for 2013 was 11.26 times, with a potential appreciation of 6.6%. Our Upbeat Era Group's 12-month target price reached HK$5.04 and gave a “hold” rating