Zacks_Analysts' Blog : Cogo Announces Design Wins - Analyst Blog

Cogo Group Inc. (COGO) announced its latest series of embedded solution design wins in the automotive sector. The new design wins will broaden Cogo's presence in China's rapidly growing automotive sector beyond its current partnership with BYD, a leading domestic auto manufacturer.

The customized, embedded solutions and software design wins are targeted toward the largest domestic Chinese auto-vendor, Chery, and include a number of key applications including GPS navigation, in-car PCs, and an automotive "Blackbox" similar to those found in airplanes as well as anti-lock braking systems (ABS). Revenue from these new initiatives is expected in the fourth quarter of 2010.

China ranks number one in the world's production of automobiles with sales of passenger vehicles reaching 1.11 million in April 2010, up 34% from the prior-year period. Cogo expects these strong trends to continue not only in tier-one but also in tier-two and tier-three Chinese cities.

Cogo Group expects that by 2012 or 2013 it will generate $50 million in sales annually from shipments of electronics products to the country’s fast-growing auto industry.

Cogo controls 2% of a market worth $20 billion for customized semiconductor modules in China. Customers are mostly small and medium sized manufacturers. The company’s  non-auto related customers include Mindray (MR), a U.S.-listed medical equipment maker, and Chinese telecom giants Huawei and ZTE.  

Cogo Group Inc. is a leading embedded solutions and software provider for the technology and industrial sectors in China. The company believes it acts as a proxy to China's technology industry as it works with virtually all the major ODMs and OEMs in China.

Cogo focuses on the telecommunications equipment, digital media and industrial applications end-markets for their customized design modules while also offering business and engineering services to their large telecommunications equipment vendor customers.