As indicated by the typical company data, the demand for digital photographic products and service of current companies in this sector seems to have been weak and declining in the past two years. The increased demand may be a result of lowering entry threshold and increasing competition.

Sector’s Current, Trend, Causes behind trend, and Future

Current and Trend

1. It seems that the demand for digital photographic products and service of many companies in this sector has been weak and continuingly declining in the past several years.

2. Intensive competition caused increased spending on advertising and marketing and thus low profitability for some of companies.

Causes behind the trend

1. Demand may still exist but the competition, especially from online business of low overhead cost, dilutes the increase in demand for many existing companies.

Industry Future

1. Companies, when enjoy the increasing business opportunities resulted from larger accessibility of online order, have to face competition from more operators as a result of lower threshold and marketing costs.

General Financial Performance of Companies In the Sector

It seems that the demand for digital photographic products and service has been weak and continuingly declining in the past several years driven by less customers and orders.

The typical gross margin is about 47%, SG&A is about 26%, and operating margin is about 8% in 2018.

The typical enterprise price/EBI (adjusted with tax shield) ratio is 37.

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