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Subject: Tam of Henderson (TMHN) - July27, 2006



 

  SmallCapReview  
  July 27, 2006  
 

Tam of Henderson (TMHN)

TMHN  is comprised of 68 franchise companies, eight of which operate under the Company name.

To learn more about Tam of Henderson, please visit www.smallcapreview.com/tmhn.htm


TMHN Investor Highlights

  • Reported that for the second quarter ended June 30, 2006 gross revenues grew 33% to $120,186 from $90,640 in the second quarter ended June 30, 2005.
  • Net profits for the second quarter of 2006 grew 80% to $61,345 from $34,177 in the second quarter of 2005.
  • TMHN completed a reverse merger on July 12, 2006, with Full Power Enterprises Global Limited ("FPEG"), a holding company of Yu Zhi Lu Aviation Service Company.
  • TMNH is comprised of 68 franchise companies, eight of which operate under the YZL name.
  • Since 2001, the Company has experienced continuous revenue growth. 
  • In 2005, 460,000 air tickets were sold equating to $43 million. For 2006 the company plans to set up 30 new ticketing offices, increase annual sales up to 920,000 tickets, and sustain a high growth rate.
  • TMHN has assembled a highly experienced management team with experience in domestic and international travel services.
  • Tam of Henderson is in the process of changing its name to to Universal Travel Group to better reflect its business.
  • According to the World Travel & Tourism Council, over the next decade, China is predicted to be the second fastest growing country in the world in terms of travel and tourism total sales, after the United States.
  • The travel industry is valued at $500 billion and with China's ongoing evolution in the global marketplace, the Company is poised to become a player in the industry.
  • Jiangping Jiang, Director of Yu Zhi Lu Aviation Service Company, said, "Tam of Henderson has a strategically sound business model that positions the Company to further capitalize on the further opening of China to the West, in particular Western companies opening satellite facilities in the region. The Company appeals to popular international business and leisure travel markets: Hong Kong (a global business, finance and consumer shopping hub), Macau (a gambling destination akin to Las Vegas USA), and Taiwan (a global manufacturing center).
  • China's entrance into the World Trade Organization, combined with an easing of the restrictions on travel by the Chinese government, and new attractions such as Disneyland of Hong Kong, are creating a tourism boom likely to continue over the next several years.  

Overview

Tam of Henderson (TMHN) through its wholly owned subsidiary Yu Zhi Lu Aviation Service Company Ltd. ("YZL"), is engaged in travel services pertaining to domestic and international lines through Hong Kong, Macau, and Taiwan. The Company's core services include booking services for air tickets, hotels, restaurants as well as tour routing for customers. Since its inception, the Company has expanded to become one of the leading air travel agencies in Shenzhen, China, one of the world’s fastest growing cities.

TMNH is comprised of 68 franchise companies, eight of which operate under the YZL name, the remaining being independently owned and operated under distinct branded names. Operating offices and franchise locations include Beijing, Shanghai, Che Gongmiao, Chongqing, Chengdu, Dalian, Fuyong, Guangzhou, Hangzhou, Hong Kong, Jinan, Long Hua, Luohu, Nanjing, Nanshan, Qingdao, Shenyang, Shenzhen, Taiwan, Xinzhou, and Zhuha. Additionally, consumers can make their own reservation and booking arrangements via an e-commerce web site (www.chutg.com) or a 24-hour toll free reservation and booking center. With the parent Company’s centralized resources, each franchise receives a strong operating platform that supports the franchises with funds, business and marketing best practices, and brand recognition to assist in their growth and development.

TMHN recently completed a reverse merger on July 12, 2006, with Full Power Enterprises Global Limited ("FPEG"), a holding company of Yu Zhi Lu Aviation Service Company. Tam of Henderson is also in the process of changing its name to to Universal Travel Group to better reflect its business. Additionally, the Company will gain an established online platform for direct-to-consumer air travel and hotel reservations.


Markets

Strong Market Potential

China is undergoing an economic transformation and is well on its way to becoming world financial power. According to Lehman Brothers, “The size of the Chinese economy is likely to climb, in world rankings, from its current position as the sixth largest to the second largest by 2030. Such an economy stands to offer exciting business and capital market opportunities to foreigners over the next 10 years.” As further evidence of this burgeoning market, in 2004, China passed a law that opened China’s retail and distribution to foreign investors by loosening the requirements for entry into the market.” (source: Business-In-Asia.com) According to the Red Herring, China received more than $45 million in new investments from venture capital firms during the first quarter of 2006.  

The country’s economic renewal brings immediate advantages and opportunities to the travel and tourism industry. According the World Travel and Tourism Council (WTTC), China is second fastest growing country in the world in terms of travel & tourism total demand. Encompassing all components of Travel & Tourism consumption, investment, government spending and exports are expected to grow to over $353.7 billion, in 2006. 

Furthermore, according to the Chinese traveling department’s forecast, the influence of the 2008 Olympic Games in Beijing, China has positively increased tourism into China worldwide. Since the announcement in 2002 of China as the host of the 2008 games, tourism has increased at an average rate of 6% per year through 2005. During 2006-2007, tourism is expected to increase at an average rate of 8% per year. Through the Olympic year, 2008, through 2010, the rate of tourism is projected to ramp-up to 10% per year. By 2010, the Chinese travel bureau estimates world travel into Beijing will generate approximately $16 Billion USD in total revenues.   


Operations and Outlook

Strong Top Line Growth

Since 2001, the Company has experienced continuous revenue growth. In 2005, 460,000 air tickets were sold equating to $43 million. Currently, the air ticketing service provides stable income streams. In 2006, the net income is expected to increase substantially when the hotel and restaurant reservation and packaged tour services go live. Revenue projections for 2006 are anticipated to exceed $5 million.

TMHN recently reported 2nd quarter results ending June 30, 2006.  Gross revenues grew 33% to $120,186 from $90,640 in the second quarter ended June 30, 2005.

Net profits for the second quarter of 2006 grew 80% to $61,345 from $34,177 in the second quarter of 2005. Second quarter 2006 revenues grew 26% sequentially to $120,168 from $95,648 in the first quarter ended March 31, 2006. In the second quarter of 2006, net profits grew 7% sequentially to $61,345 from $57,589 in the first quarter of 2006.

Growth Strategies

Management has set aggressive goals that include establishing 30 new direct and franchise ticketing offices up from 160, projecting sales of more than 900,000 air tickets equating to more than $66 million in gross revenues from total ticket sales, improving its hotel reservation and packaged tour services, and generating 100% top line growth year-to-year in 2006. TMHN anticipates transitioning their major services to an integrated network, the Shenzhen Aviation Network (“SAN”). This network of wired and wireless (WAP) nodes will connect all branches (direct offices and franchises) allowing for a centralized computer infrastructure that provides dynamic access for end-users to create their own travel package online. Travelers can access SAN through a 24-hour toll free reservation and booking center, or their personal computer, cell phone, or other communication devices, to obtain information on-demand to further access services such as booking air tickets, hotel booking, tours as well as downloading different kinds of discount cards. This state-of-the-art business model will position the Company to continue to meet evolving consumer demand. 


Recent News and Press Releases

Tam of Henderson Reports Second Quarter Financial Results

Tam of Henderson to Change Name to Universal Travel Group and Move Corporate Headquarters

Tam of Henderson Assembles Highly Experienced Management Team

Tam of Henderson Completes Reverse Merger with Yu Zhi Lu Aviation Service Company

For the latest News and Quotes on TMHN Click Here.


Forward Looking Statements

The Private Securities Litigation Reform Act of 1995 provides a "Safe harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward-looking statements with respect to events, the occurrence of which involved risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the company is detailed from time to time in the company's reports filed with the Securities and Exchange Commission.

Disclaimer

SmallCapReview.com feature stock reports are intended to be stock ideas, NOT recommendations. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. For continuing coverage of TMHN, please sign up for our free newsletter. Information contained in this report was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable. For more information see our disclaimer section, a link of which can be found on our web site. This document contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by these sections. Actual results may differ materially from the Company's expectations and estimates. The information provided in this report is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country.

Copyright SmallCapReview.com. All rights reserved. SmallCapReview.com is not a Registered Broker/Dealer or Financial Advisor, nor do we hold ourselves out to be. All materials presented on our web site and individual reports released to the public through this web site, e-mail or any other means of transmission are not to be regarded as investment advice and are only for informative purposes. Before making a purchase or sale of any securities featured on our web site or mentioned in our reports, we strongly encourage and recommend consultation with a registered securities representative. This is not to be construed as a solicitation or recommendation to buy or sell securities. As with any stock, companies we select to profile involve a degree of investment risk and volatility. Particularly Small-Caps and OTC-BB stocks. All investors are cautioned that they may lose all or a portion of their investment if they decide to make a purchase in any of our profiled companies. Past performance of our profiled stocks is not indicative of future results. The accuracy or completeness of the information on our web site or within our reports is only as reliable as the sources they were obtained from. The profile and opinions expressed herein are expressed as of the date the profile is posted on site and are subject to change without notice. No investor should assume that reliance on the views, opinions or recommendations contained herein will produce profitable results. SmallCapReview.com may hold positions in securities mentioned herein, and may make purchases or sales in such securities featured on our web site or within our reports. In order to be in full compliance with the Securities Act  of 1933, Section 17(b), SmallCapReview.com will disclose in it's disclaimer, what, if any compensation was received for our efforts in researching, presenting and disseminating this information to our subscriber database and featuring the report on the SmallCapReview.com web site. SmallCapReview.com has been compensated ten thousand dollars by a third party (National Financial Communications) for its efforts in presenting the Tam of Henderson profile on its website and distributing it to its database of subscribers. SmallCapReview.com may decide to purchase or sell shares on a voluntary basis in the open market before, during or after the profiling period of this report. Information presented on our web site and within our reports contain "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be "forward looking statements." Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as “expects’”, “will,” “anticipates,” “estimates, “believes,” or that by statements indicating certain actions “may,” “could,” or “might” occur.

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