I listened to he call last night and even braved the echo (wish someone told her to turn off her speakers early in the Q&A segment, lol...) and are my comments/thoughts as I heard things:
1. While Q4 is expected to be < Q3, which was initially a dissapointing development, I wonder if they are booking oders as revenue as they get them and Q3 is actually the big ramp up for the Christmas Season for distributers? Or do they even celebrate Christmas like us westerners do in China?
2. They said they currently have 25% penetration with existing traditional sales channels (physical stores.) Think they said they are targenting 50% for 2011. I would think a brand like Haier will eventually achive 80-90% penetration in China.
3. They said they will begin pursuing Chinese online (Amazon China?) and Chinese informercial venues in 2011 also.
4. The AR situation will continue in the short term, but did improve in Q4. They are working on shortening the pay cycle but this is an outcome of initial rapid growth and will take some time.
5. They do plan to pursue overseas venues, once internal penetration gets closer to Heli's goals (think I found something about India in one of my Google searches.)
6. The Haier contract runs through 2018 and Hairer AV products are their primary focus still. As their distribution network continues to build out they will be seeking other brands to represent.
All in all I found the presentation professional and found the Heli representives to be open and honest. We have a young agressive team with a premier product brand name to build their business up further. Many of my doubts if this was real or not have been lifted and I am comfortable holding my shares and will add on any dips from here viewing them as a solid buying opprotunity.
Purely in my humble opinion. Good luck and regards,
MTT
