SINA Corporation (SINA:NASDAQ), a Chinese company, engages in online media and provides information services in China. SINA's stock price has fallen dramatically, along with the rest of the Chinese stock market, in recent months. SINA is one of the premier companies in its industry in China.
SINA reported revenues of $71.3 million for the first quarter 2008, up an impressive 39% from $51.3 million for the same comparable period in 2007. Net income for the first quarter 2008 was $16.1 million, increasing a whopping 86% from $8.6 million for the first quarter 2007. SINA reported revenues of $246.1 million for the full year 2007, up 15.6% from $212.9 million in 2006. Net income for the full year 2007 was $57.7 million, an increase of 44.6% from $39.9 million in 2006. SINA has a significant amount of cash, $512 million as of March 31, 2008.
SINA is known for its strong brand advertising on websites that market and target China. The Company operates five major businesses which are SINA.com (a provider of online news), SINA Mobile, SINA Community, SINA.net (search services), and SINA E-Commerce (online shopping). SINA has benefited from its strong brand and premium web content by producing impressive revenue and earnings growth the last five years.
In May 2008, SINA announced that it was starting a Chinese news site in English. In 2007 SINA obtained online broadcasting rights in China for the much coveted soccer matches of the English Premier League and Italian Series A.
SINA's stock closed down 29% from its fifty-two week high of $59.27 at $41.98 as of the close on July 22nd. Not long ago many investors watched the Chinese stock market skyrocket to new highs wishing they had owned shares in some of those companies. Now that the Chinese stock market has had a substantial decline, solid quality companies such as SINA are selling well below their fifty-two week record highs and appear to offer good value with rapid growth in a booming market and economy. The other added bonus is the likely probability of a strong appreciation of the Chinese Yuan against the U.S. dollar in the future, which would augment revenues and earnings. SINA is a brand name media company that you may want to "ad" to your portfolio.
References:
http://corp.sina.com.cn/eng/news/2008-05-15/85.html
Company First Quarter 2008 Press Release
http://corp.sina.com.cn/eng/sina_rela_2_eng.htm
Company 2007 Annual Report
http://corp.sina.com.cn/eng/news/2008-05-17/86.html
SINA Press Release to Launch News Site in English
http://corp.sina.com.cn/eng/news/2007-08-10/72.html
SINA Press Release for Broadcasting Rights for European Soccer
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