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DEER CONSUMER PRODUCTS NASDAQ : DEER

Chutinush Taksinapinunt


Date:

03/02/2011

Symbol:

DEER

Exchange:

NASDAQ

Industry:

Home Furnishings & Fixtures

Sector:

Consumer Goods

Recommendation: Strong Buy Target Price:

$22.00

Current Price: $11.21

Summary

Fundamental Data

Market Cap ($M):

376.54

Gaining Global Market Share

Avg.Vol (10Day):

234,950

Strong sales in South East Asia, China

52 Week High/Low:

13.00-6.98

2011 earnings will outperform

• P/E ratio (TTM):

14.41

Middle class, Asian retail base this market is the fastest growing market in the world.

P/B ratio:

2.87

Dividend yield (%):

N/A

ROA (%):

16.16

ROE (%):

29.91

Profit Margin (%):

17.23

Operating Margin (%): 20.34


INTRA-DAY INTERACTIVE CHART

SUMMARY Change

-0.140 (-1.233%)

Bid

11.000

Ask

13.050

Open

11.360

High

11.480

Low

11.130 N.A.

Volume 52-Week Range

13.00 - 6.98 4.963%

1-Yr Return

Earnings EARNINGS

FUNDAMENTALS

Earnings Past 12 Months

0.790

Quarter Est. EPS (12/10)

0.30

Market Cap (Millions)

Quarter Est. EPS (03/11)

0.15

Float (Millions)

17.287

Year Est. EPS (12/10)

0.88

Return on Equity

19.837

14.190

Price/Earnings (Trailing)

0.909

Relative P/E

33.590

Shares (Millions)

376.545

2,408,178.000

Short Interest Last Dividend Reported

N.A.

Earnings Growth Rate

66.000

Dividend Yield (ttm)

N.A.

Estimated P/E

12.900

Relative Dividend Yield

N.A.

PERFORMANCE FOR DEER CONSUMER PRODUCTS, INC. Period

% Actual

% vs. S&P 500

Rank In Industry

Industry Rank

4 Week

-1.08

-3.90

35

55

13 Week

-2.13

-10.75

32

38

26 Week

38.49

18.15

92

65

52 Week

2.51

-13.65

40

95

-2.05

-5.00

26

41

YTD


Company Profile A Market Leader in the Small Household and Kitchen Appliances Industry: Deer Consumer Products, Inc. (NASDAQ Global Select Market: DEER) is a U.S. company with its primary operations in China. Founded by the same senior management team 16 years ago, Deer is one of the world's largest vertically integrated (from production to market), "Deer" branded and ODM/OEM manufacturers of small home and kitchen appliances marketing to both global and China domestic consumers. Deer has recognized rapid sales and earnings growth in the recent years while maintaining a strong balance sheet and favorable net income margins across its extensive product lines. Deer's growth strategy is focused on expanding the high margin, China domestic market sales. Direct Beneficiary of China's Economic Growth and Rising Middle Class Consumer Wealth: As the Chinese people become more affluent, they are increasingly looking to embrace the conveniences of the more modern western world. On average, each Chinese household has 4 small kitchen appliances, compared to 35 per household in a developed country. As a decade long exporter of high quality products to global brand name customers, Deer has extended the same high level of quality products to Chinese domestic consumers. Deer provides essential household products that directly help improve the lifestyles of the 1.4 billion Chinese consumers, especially targeting China's rising middle class. Deer's extensive domestic market product distribution channels are a direct access to China's wealthier and expanding consumer markets. 16 Years of Business Execution, Total Management Commitment: Throughout its 16 year corporate history, Deer has been led by its original founders. Supported by more than 100 patents, trademarks and copyrights and approximately 2,000 employees, Deer's entire management team and insiders have voluntarily entered into 3 years of share lockup agreements which prohibit them from selling any shares to the general public through at least year 2013. Deer management and insiders' vested interest is totally aligned with those of the Company's public shareholders. Extensive Global Brand Representations, Innovative and High Quality Products: Deer's product lines include blenders, juicers, soy milk makers, and a large variety of other small household kitchen appliances. With more than 100 global clients/branded products such as Black & Decker, ArĂŞte, Disney, Toastmaster, Magic Bullet, Back to Basics, Wal-Mart and rapidly expanding China domestic market footprint, Deer has been able to successfully execute a growth plan serving both China domestic and global customers.


REVENUE Periods

2009

2010

March

6.872

23.9025

June

15.311

34.4507

September

26.541

55.2633

December

32.6186

Note: Units in Millions of U.S. Dollars

EARNINGS PER SHARE Periods

2009

2010

March

0.03278

0.11955

June

0.07901

0.17863

September

0.1772

0.27584

December

0.2115

Note: Units in U.S. Dollars

CONSENSUS ESTIMATES ANALYSIS # of Estimates

Mean

High

Low

1 Year Ago

Quarter Ending Mar-11

2

31.15

32.40

29.90

--

Quarter Ending Jun-11

2

45.80

48.00

43.60

--

Year Ending Dec-11

4

226.00

235.00

221.50

181.15

SALES (in millions)


EARNINGS (per share)

Quarter Ending Mar-11

2

0.15

0.16

0.14

0.11

Quarter Ending Jun-11

2

0.23

0.24

0.22

0.17

Year Ending Dec-11

4

1.15

1.25

1.05

0.88

LT Growth Rate (%)

1

30.00

30.00

30.00

30.00

Sales and Earnings Figures in U.S. Dollars (USD)

VALUATION RATIOS Company

Industry

Sector

S&P 500

14.02

17.49

10.47

17.15

P/E High - Last 5 Yrs.

--

49.58

41.46

48.15

P/E Low - Last 5 Yrs.

--

13.21

10.39

12.69

Beta

--

0.80

0.95

1.29

Price to Sales (TTM)

2.53

1.10

1.12

2.21

Price to Book (MRQ)

2.82

2.66

0.81

3.73

Price to Tangible Book (MRQ)

3.42

4.88

1.03

10.02

13.82

12.71

4.71

8.36

Price to Free Cash Flow (TTM)

--

11.23

7.96

49.91

% Owned Institutions

--

--

--

--

P/E Ratio (TTM)

Price to Cash Flow (TTM)


DIVIDENDS Company

Industry

Sector

S&P 500

Dividend Yield

--

1.18

0.87

1.59

Dividend Yield - 5 Year Avg.

--

1.11

1.36

2.25

Dividend 5 Year Growth Rate

--

8.81

1.69

-5.02

0.00

17.67

11.78

29.78

Company

Industry

Sector

S&P 500

Sales (MRQ) vs Qtr. 1 Yr. Ago

108.22

11.88

4.59

11.70

Sales (TTM) vs TTM 1 Yr. Ago

141.85

12.89

6.56

11.47

--

8.15

9.36

7.75

EPS (MRQ) vs Qtr. 1 Yr. Ago

55.67

63.16

192.89

59.86

EPS (TTM) vs TTM 1 Yr. Ago

153.13

--

--

--

EPS - 5 Yr. Growth Rate

--

9.05

1.96

4.91

Capital Spending - 5 Yr. Growth Rate

--

5.27

4.79

4.72

Company

Industry

Sector

S&P 500

Quick Ratio (MRQ)

2.76

2.50

0.55

0.63

Current Ratio (MRQ)

3.32

3.00

0.71

0.96

LT Debt to Equity (MRQ)

0.00

18.76

23.82

107.74

Total Debt to Equity (MRQ)

7.16

23.38

37.25

152.28

47.01

0.06

0.11

14.04

Payout Ratio(TTM) GROWTH RATES

Sales - 5 Yr. Growth Rate

FINANCIAL STRENGTH

Interest Coverage (TTM)


PROFITABILITY RATIOS Company

Industry

Sector

S&P 500

28.35

28.32

10.44

31.81

--

27.96

24.02

29.39

21.40

--

--

--

--

8.21

10.17

18.46

20.34

7.74

-0.58

--

--

5.18

5.23

15.05

20.21

7.80

-0.60

15.21

--

5.24

5.05

14.68

17.23

5.29

-1.48

11.17

--

3.29

3.39

10.84

14.75

27.58

14.24

20.07

--

214.66

31.99

24.93

Company

Industry

Sector

S&P 500

Revenue/Employee (TTM)

76,966

12,749,888

19,900,897

560,452

Net Income/Employee (TTM)

13,262

711,150

1,025,870

66,708

Receivable Turnover (TTM)

5.43

6.12

10.33

9.60

Inventory Turnover (TTM)

6.14

4.14

4.24

6.25

Gross Margin (TTM)

Gross Margin - 5 Yr. Avg.

EBITD Margin (TTM)

EBITD - 5 Yr. Avg

Operating Margin (TTM)

Operating Margin - 5 Yr. Avg.

Pre-Tax Margin (TTM)

Pre-Tax Margin - 5 Yr. Avg.

Net Profit Margin (TTM)

Net Profit Margin - 5 Yr. Avg.

Effective Tax Rate (TTM)

Effecitve Tax Rate - 5 Yr. Avg. EFFICIENCY


Asset Turnover (TTM)

1.27

1.11

0.34

0.54

Company

Industry

Sector

S&P 500

21.90

6.66

1.44

5.85

Return on Assets - 5 Yr. Avg.

--

4.47

3.37

5.63

Return on Investment (TTM)

29.78

12.42

2.18

7.51

--

7.48

5.99

7.35

29.91

14.64

4.36

15.86

--

13.25

8.74

7.73

MANAGEMENT EFFECTIVENESS

Return on Assets (TTM)

Return on Investment - 5 Yr. Avg.

Return on Equity (TTM)

Return on Equity - 5 Yr. Avg.

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Contact Detail: Chutinush Taksinapinunt Business Development Director Heffernan Capital Management Email: chutinush@heffernan-inc.com Chutinush Taksinapinunt holds a Bachelor of Business Administrators degree Majoring in Finance and Banking. Chutinush Taksinapinunt is an experienced market maker and Portfolio Manager, having worked with some of Thailand’s largest Securities Company and Financial Institutions. Price Estimate by Shayne Heffernan PhD Shayne Heffernan of Ebeling Heffernan holds a PhD in Economics serves as CEO of Heffernan Holdings Inc and Co Founder of Ebeling Heffernan www.ebeling-heffernan.com Bangkok Suite 53 Athenee Tower 63 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 THAILAND Tel: +66 2 126 8000 Fax: +66 2 126 8080 New York 347 5th Avenue, Suite 1402-508 Ny, NY 10016 Tel: +1 646-403-9881 Fax: +1 646-403-8014 Singapore 3 Raffles Place #07-01 Bharat Building Singapore 048617 Tel: +65 6329 6408Fax: +65 6329 9699


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Deer Consumer Products, Inc  

Chutinush Taksinapinunt of Heffernan Capital Management has issued a strong buy on Deer Consumer Products, Inc. (NASDAQ: DEER) with a Price...