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Deer Consumer Products, Inc. Message Board

  • steve.stuart11 steve.stuart11 Apr 4, 2011 6:27 PM Flag

    why DEER's revenue in 2010 is so high ..

    Deer has been expanding locally in China and not depending soley on US exports. Chinease government had initiated one of the largest financial incentive program in 2010 and this has helped lot of middle class chinease to enjoy items that only the rich had....

    also see below deal between Deer and Wal-Mart, China.

    NEW YORK, Feb. 22, 2010 /PRNewswire-FirstCall/ -- Deer Consumer Products, Inc. ("Deer") (Nasdaq: DEER) (website: www.deerinc.com), one of the world's largest designers and OEM/ODM manufacturers of home and kitchen electronics marketing to both global and Chinese domestic consumers, announced today that Deer has initiated product sales to Wal-Mart Stores in China.

    "Deer" branded kitchen electronic products will be immediately available at local Chinese Wal-Mart stores located in the Guangdong province, China's most economically developed region.

    Bill He, Chairman & Chief Executive Officer of Deer commented: "While Deer continues to maintain healthy profit margins across all product lines, we anticipate significant revenue increases through various expanding distribution channels in the China domestic markets. Deer's fully integrated model of aligning product design, internal manufacturing and quality control, supply chain and customers has helped establish Deer as an effective distribution platform for expanded product offerings in China's fast growing small household appliance industry. We look forward to reporting our 2009 annual results by mid March of 2010."


    If you do not believe in the future of China then you can sell this stock ... let me tell you I work for a large global CPG firm and + 20% of our global revenue comes from China and that is a lot ...

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    • don't know...how do you ? The products sold are not the same are they (I saw one overlap)

      Why do US customers sell a no name product (I presume you say that meaning poor quality) ?

    • SUPOR is listed in china, they are one of leading brand in china commanding premium prices. Even they only have operating margin of 9%, do you believe DEER a no-name in china can get 20% margin.:)

    • could get any financial out of yahoo (but did find it), and doesn't seem to come up in Ameritrade (under the numerical or company name)

    • check up the name Benjamin Wey, any stock he is associated with turn out the be fraud.

    • somehow I was blocked from posting more detailed information. Just look at financial of DEER and SUPOR, you would know what I am talking about.

    • every single RTO stock we investigated carefully, it turned out they are fraud. Out of 200+ stocks, I have not found any single one who is not fraud. I have not looked at CHLN carefully, that maybe real. Every single one of them we looked at has 1%-50% of the reported revenue and less than 20% of reported net income.

    • I hear that. 95 % seems high to me..very high.

      good luck.

    • it's all case by case, that's what traders do, make new decision based on incoming information. Also I was wrong on chinese RTO stocks before, now I believe 95% of them are fraud after did some on the ground research.

    • Hi Steve - thanks for the message.

      What is the best comp for DEER. I need one that is in CPG and has 20 percent operating margins.

      I've looked at Black and Decker, Jarden, Whirlpool, Electrolux, Indesit, Haier, historical data for Sunbeam and Maytag, SK's appliance, GE's historical appiance division...

      I just can't find a consumer product company with 20 percent oeprating margins including all the competitors in China.

      So I looked at auto manufacturing companies and auto suppliers. Still nothing.

      Can you help me out.

      • 1 Reply to anteup9
      • Gross margins for small kitchen appliances are normally higher than traditional home appliances ... they could command Gross Margin as high as 30%.
        Unlike Whirlpool, Maytag or B&D, Deer buy resin and creates its own molds thus improving its overall cost and margin.

        Another thing to consider is their overall lower SG&A costs.. This could be mainly due to cheaper lease/land costs, people cost, less marketing expense (they must be obviously spending less than Sony or Whirlpool as % of sales).

        Also note, the last 2 years their local China sales have increased and thus they are avoiding the US companies who normally negotiate lower prices from Chinese companies.

        Also note salary of their top executives are only $24K to $50K compared to millions minted by Whirlpoo or B&D….. Most Americans make more than their management team :-)

        Also they use a smaller CPA firm called "Goldman Kurland & Mohidin" instead of using a money minting accounting firm like PwC, KPMG, etc .

        In any case, I know 20% in Operating Margin seems high for the industry but I believe they are running the operation well and I will give the benefit of the doubt to them instead of a short loving analyst.....

        Advice to the management team is to hire more branded accounting firm even though I personally believe smaller accounting firms do a better job …also hire a very good legal company … all this will reduce margin slightly may be 1% at most …

    • Steve, there is no (a) in Chinese but thanks
      for that.

      Biff

 
DEER
0.080.00(0.00%)Jul 23 2:09 PMEDT

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