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ChinaSecurities.com Small-Cap Feature: China Recycling Energy Skyrockets Top And Bottom Line

Posted by AGORACOM at 10:30 AM on Friday, August 21st, 2009

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2] Great Results and Valuations - Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results. Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan. As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009. Why? When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into. This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.

TODAY’S FEATURED COMPANY

China Recycling Energy Corporation (OTC.BB:CREG)

Creg

China Recycling Energy Corp.  is based in Xi’an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Currently, recycled energy represents only an estimated 1% of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand.

On August 21st 2009, the Company announced unaudited financial results for the second quarter of 2009 ended June 30, 2009.

Check out the full details below!

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

2nd Quarter Ending June 30, 2009

  • Revenue was $11.1 million compared to $4.3 million in the first quarter of 2009 and $2.6 million in the second quarter of 2008.
  • Net income was $3.2 million with a Diluted EPS of $0.07 versus net income of $1.1 million and a diluted EPS of $0.02 in the first quarter of 2009 and a net loss of $3.8 million and a diluted EPS of $(0.12) in the second quarter of 2008 (restated).

MY COMMENTS:

Both revenue and profits grew at an extraordinarily fast pace, both sequentially and year-over-year.  However, the share price has not followed, so investors have a real opportunity to get in to a fast growing company at cheap prices.

Granted, by Chinese standards, revenues are still small but anytime a company more than doubles sequential growth and quadruples annual growth, you have to take notice.  EPS of $0.07 for the quarter is extremely attractive for a company trading in the $1.20 range.   When taking a closer look at the company, make sure to examine the balance sheet for any weaknesses.  If they’re clean and have no skeletons in the closet, let me know so that we can ride this one together.

As always, this is my view in a snapshot. It is intended to give you a running start into your research. Now, you have to do your own due diligence to make sure the valuation is not impaired by other factors including balance sheet items, lawsuits or any other negative events.

If you have any comments, I’d love to see them below.

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES

We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1. ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinse Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.

Regards,
George

Posted in China | No Comments »

ChinaSecurities.com Small-Cap Feature: Orient Paper Has Top And Bottom Line Value

Posted by AGORACOM at 9:30 AM on Friday, August 21st, 2009

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2] Great Results and Valuations - Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results. Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan. As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009. Why? When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into. This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.

TODAY’S FEATURED COMPANY

Orient Paper Inc. (OTC.BB:OPAI)

Opai - header

Orient Paper, Inc., through its wholly owned subsidiaries, controls and operates Hebei Baoding Orient Paper Milling Co., Ltd (’HBOP’). Founded in 1996, HBOP is engaged in the production and distribution of products such as corrugated paper, offset paper, writing paper and blueprint paper.

On August 17th 2009, announced it Second Quarter revenue.

Check out the full details below!

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

  • Revenue for the second quarter of 2009 was approximately $22.4 million compared to approximately $17.6 million for the same period in 2008, an increase of approximately 27.6%.
  • Gross profit for the second quarter of 2009 increased 25.2% to approximately $4.0 million from approximately $3.2 million for the second quarter of 2008.
  • Net income was approximately $2.5 million, or $0.05 per diluted share

MY COMMENTS:

Strong revenue and profit growth is great to see.  Even better to see a company with $0.05 EPS for the quarter.  If they can maintain this pace (excluding the terrible Q1 of the year), then we’re looking at a company with $0.20 in annual earnings.  This assumes no further growth, which we know is unlikely.  Given the fact Orient Paper is trading at $0.85 range, you have a company trading at just over 4X earnings.

The caveat is to make sure the $0.05 in EPS this quarter didn’t come from pent-up demand as a result of Q1 slowdown.

As always, this is my view in a snapshot. It is intended to give you a running start into your research. Now, you have to do your own due diligence to make sure the valuation is not impaired by other factors including balance sheet items, lawsuits or any other negative events.

If you have any comments, I’d love to see them below.

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES

We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1. ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinse Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.

Regards,
George

Posted in China | 2 Comments »

ChinaSecurities.com Small-Cap Feature: China Agritech P/E Of 5.25 Is Attractive

Posted by AGORACOM at 9:30 AM on Thursday, August 20th, 2009

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2] Great Results and Valuations - Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results. Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan. As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009. Why? When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into. This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.

TODAY’S FEATURED COMPANY

China Agritech Inc – OTC.BB:CAGC

Cagc

China Agritech, Inc. is engaged in the development, manufacture and distribution of liquid and granular organic compound fertilizers and related products in China. The Company has developed proprietary formulas that provide a continuous supply of high-quality agricultural products while maintaining soil fertility. The Company sells its products to farmers located in 26 provinces of China.

On Augsut 17th, the company reported it’s Quarterly Revenues and Net Income for the Second Quarter of 2009.

Check out the full details below!

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

  • Net revenue increased 56.9% year-over-year to $21 million
  • Gross profit increased 37.3% year-over-year to $8.9 million
  • Net income increased 91.2% year-over-year to $5.6 million

MY COMMENTS:

Anytime a company hits record revenue and income, you have to take a closer look and see if you’ve stumbled upon a company that is really hitting its growth cycle.

In this case China Agritech achieved earnings of $0.22/share for the quarter! Even if the company had no more earnings for the year, you’d have a decent P/E.  However, in this case, we know the company has re-affirmed annual net income of $9.5 million, which should translate into approximately $0.38/share for the year.  With the company trading in the $2.80 range, this translates into roughly an 7.5 P/E.  I like that.

The story gets even better.  With $16.5 million in cash, China Agritech has about $.80/share in cash.  As such, if you strip that out of the share price, you are actually buying the business for $2.00 per share, which bring the true P/E down to about 5.25.  The comany has no long-term debt and a current ratio of 5.4 : 1.  This is an incredibly attractive opportunity.

As always, this is my view in a snapshot. It is intended to give you a running start into your research. Now, you have to do your own due diligence to make sure the valuation is not impaired by other factors including balance sheet items, lawsuits or any other negative events.

If you have any comments, I’d love to see them below.

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES

We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1. ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinse Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.

Regards,
George

Posted in China | 1 Comment »

ChinaSecurities.com Small-Cap Company Feature: China Wind Systems Inc.

Posted by AGORACOM-Andreas at 7:30 AM on Thursday, August 20th, 2009

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2] Great Results and Valuations - Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results. Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan. As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009. Why? When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into. This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.

TODAY’S FEATURED COMPANY

China Wind Systems Inc – OTC.BB:CWSI

Cwsi

China Wind Systems supplies forged rolled rings to the wind power and other industries and industrial equipment to the textile and energy industries in China. With its newly finished state-of-the-art production facility, the Company plans to increase its production and shipment of high-precision rolled rings and other essential components primarily to the wind power and other industries.

On August 17th, the company reported Strong Financial Results for the Second Quarter of 2009.

Check out the full details below!

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

  • Net revenues increased 21.5% year-over-year to $13.6 million
  • Net income increased 26.2% year over year to $1.8 million, or $0.03 per diluted share

MY COMMENTS:

If you extrapolate the company’s $0.03/share earnings over the year, you could have a company with $0.12/share in profit for the year.  With the company trading at approximately $1.30, you have an opportunity to buy into a Chinese wind company at just a little more than 10x earnings.  I have seen better valuations out there – but if you like the wind energy business, this has a lot of appeal.

In addition, the company has announced a 1:3 reverse stock split, which is no doubt intended to help the company list on a more senior exchange.  Typically, reverse split are bad for shareholders – unless they are done for an advantageous purpose and this definitely appears to be one.

As always, this is my view in a snapshot. It is intended to give you a running start into your research. Now, you have to do your own due diligence to make sure the valuation is not impaired by other factors including balance sheet items, lawsuits or any other negative events.

If you have any comments, I’d love to see them below.

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES

We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1. ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinse Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.

Regards,
George

Posted in China | No Comments »

ChinaSecurities.com Small-Cap Company Feature: China Kangtai Cactus Biotech Inc

Posted by AGORACOM at 10:00 AM on Friday, August 14th, 2009

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2] Great Results and Valuations - Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results. Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan. As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009. Why? When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into. This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.

TODAY’S FEATURED COMPANY

China Kangtai Cactus Biotech Inc – OTC.BB:CKGT

Ckgt - header

China Kangtai Cactus Biotech, Inc. is a leading grower, developer, producer, and marketer of cactus-derived products, including nutraceuticals, nutritious food, health and energy drinks, beer, wine and liquor, extracts and powders, and animal feed.

On Augsut 13th, the company announced Record Results for the Second Quarter of 2009.

Check out the full details below!

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

  • Second quarter revenue increased 30% to $6.5 million from $5.0 million in Q2 2008
  • Gross profit increased 80% to $2.7 million from $1.5 million in Q2 2008
  • Net income increased 37% to $1.4 million from $1.0 million in Q2 2008

MY COMMENTS:

The pace of Kangtai’s revenue growth accelerated in the second quarter with a year-over-year increase of 30% and a sequential increase of 96%. Anytime I see that kind of sequential growth, I pay attention and I’ll watch for the next Q to see if this was an extraordinary event or not.  The 30% Y-O-Y growth isn’t anything to sneeze at either.

The company generated EPS of $0.07 this quarter, which translated into sequential growth of 105% and about 15% Y-O-Y.  My suspicion is that we have a company that is back on track after suffering from the global issues in Q1.

Now, given the fact the company is trading around $1.00 and we know they’ve generated about $0.10 EPS in the first half of the year, we can probably safely guess a year-end EPS of $.20 on the low-end and $.25 on the high-end.  I prefer to work with the low-end, which still gives the company an extremely attractive P/E of about 4.5 given the fact the stock is trading around $.90.

My only caveat here is that I can’t wrap my head around the Cactus business.  It obviously has some legs in China but my lack of our experience with it here in North America means you have some research to do.  This isn’t necessarily a negative.  In fact, we may have stumbled onto a great business that the majority of North American investors are unaware of.

As always, this is my view in a snapshot. It is intended to give you a running start into your research. Now, you have to do your own due diligence to make sure the valuation is not impaired by other factors including balance sheet items, lawsuits or any other negative events.

If you have any comments, I’d love to see them below.

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES

We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1. ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinse Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.

Regards,
George

Posted in China | 3 Comments »

ChinaSecurities.com Small-Cap Company Feature: Artificial Life Inc

Posted by AGORACOM-Andreas at 10:00 AM on Thursday, August 13th, 2009

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2] Great Results and Valuations - Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results. Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan. As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009. Why? When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into. This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.

TODAY’S FEATURED COMPANY

Artificial Life Inc. – OTC.BB:ALIF

Alif

As a leading, full-service provider of mobile broadband 3G technology, mobile participation TV, mobile gaming, content and business applications, Artificial Life provides 2D and 3D multi- and single-player rich-media applications for 3G, 3.5G and 4G network-enabled mobile phones.

On Augsut 13th, the company announced Strong Results for the Second Quarter of 2009.

Check out the full details below!

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

  • Revenues for the quarter ended June 30, 2009 were $7,577,96 – 38% increase
  • Gross margin for the quarter ended June 30, 2009 was $6,480,362 – 35% increase

MY COMMENTS:

In the first seven months of 2009, the company sold over 8 million mobile 3G and Java games globally and generated over 3 million downloads for the iPhone/iPod Touch. Hence, the second quarter and the first half of 2009 were strong despite the global financial crisis. Hence their Income from operations for the quarter ended June 30, 2009 was $3,124,103, up from operations of $2,890,187 for the quarter ended June 30, 2008.

As always, this is my view in a snapshot. It is intended to give you a running start into your research. Now, you have to do your own due diligence to make sure the valuation is not impaired by other factors including balance sheet items, lawsuits or any other negative events.

If you have any comments, I’d love to see them below.

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES

We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1. ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinse Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.

Regards,
George

Posted in China | No Comments »

ChinaSecurities.com Small-Cap Company Feature: Yucheng Technologies

Posted by AGORACOM-Andreas at 9:30 AM on Wednesday, August 12th, 2009

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2] Great Results and Valuations - Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results. Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan. As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009. Why? When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into. This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.

TODAY’S FEATURED COMPANY

Yucheng Technologies Limited (Nasdaq: YTEC)

Ytec

Yucheng Technologies Limited is a leading IT service provider to the Chinese financial service providers. Headquartered in Beijing, China, Yucheng services clients from its nationwide network in 23 cities providing a comprehensive suite of IT solutions to Chinese Banks including: (i) Channel Solutions, such as e-banking and call centers; (ii) Business Solutions, such as core banking systems and loan management; and (iii) Management Solutions, such as risk analytics and business intelligence.

On August 12th 2009, the company released its Financial Results for the Second Quarter of 2009.

Check out the full details below!

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

  • Fully diluted non-GAAP EPS was USD 0.16, as compared to USD 0.15 in the second quarter of 2008.
  • Total net revenue grew 41.9% year-over-year to USD 15.1M.
  • Yucheng had USD 32.8M in cash, compared to USD 26.0M in the second  quarter of 2008.

MY COMMENTS:

Yucheng’s EPS for fully diluted shares on a consolidated basis were USD 0.16 (non-GAAP) and USD 0.14 (GAAP), compared to USD 0.15 (non-GAAP) and USD 0.13 (GAAP) in the second quarter of 2008. These figures include a USD 0.03 gain from the disposal of our Elegon business in the second quarter of 2009 and the USD 0.02 gain from the disposal of a manufacturing subsidiary in 2008. Without these one time gains, EPS would be flat year over year.

As always, this is my view in a snapshot. It is intended to give you a running start into your research. Now, you have to do your own due diligence to make sure the valuation is not impaired by other factors including balance sheet items, lawsuits or any other negative events.

If you have any comments, I’d love to see them below.

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES

We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1. ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinse Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.

Regards,
George

Posted in China | No Comments »

ChinaSecurities.com Small-Cap Company Feature: Tongxin International Ltd

Posted by AGORACOM-Andreas at 9:30 AM on Tuesday, August 11th, 2009

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2] Great Results and Valuations - Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results. Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan. As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009. Why? When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into. This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.

TODAY’S FEATURED COMPANY

Tongxin International Ltd – NASDAQ: TXIC

Txic

Tongxin International Ltd., the largest independent supplier of EVBS in China, is capable of providing EVBS for both the commercial truck and light vehicle market segments. The Company also designs, fabricates and tests dies used in the vehicle body structure manufacturing process.

On August 11th 2009, the company released its Financial Results for the Second Quarter of 2009.

Check out the full details below!

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

  • Q2 2009 revenues increased 50.2% to $34.8 million vs. Q2 2008
  • Second quarter revenues grew 18.2% sequentially over Q1 2009
  • Earnings per share based on 11.3 million basic shares outstanding were $0.39 and $0.34 per weighted diluted shares

MY COMMENTS:

Tongxin should be pleased with the rebound in their business for this quarter and the improving trends in key operating metrics compared to 2008. Although margins came down a bit in the second quarter of 2009 compared to the first quarter,  Significant quarter-over-quarter sales increases were directly attributed to increases in the Company’s Revenue streams.

As always, this is my view in a snapshot. It is intended to give you a running start into your research. Now, you have to do your own due diligence to make sure the valuation is not impaired by other factors including balance sheet items, lawsuits or any other negative events.

If you have any comments, I’d love to see them below.

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES

We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1. ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinse Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.

Regards,
George

Posted in China | No Comments »

ChinaSecurities.com Small-Cap Company Feature: Perfect World

Posted by AGORACOM-Andreas at 9:30 AM on Monday, August 10th, 2009

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2] Great Results and Valuations - Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results. Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan. As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009. Why? When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into. This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.

TODAY’S FEATURED COMPANY

Perfect World – NASDAQ:PWRD

Pwrd

Perfect World Co., Ltd. (Nasdaq: PWRD – News) is a leading online game developer and operator based in China. Perfect World primarily develops online games based on proprietary game engines and game development platforms.

On August 10th 2009, the company released its unaudited second quarter results for 2009.

Check out the full details below!

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

  • Total revenues were USD76.3 million in 2Q09, an increase of 22%  from the previous quarter
  • Gross profit was USD66.5 million in 2Q09, an increase of 23.3% from 1Q09, and an increase of 55.0%, 2Q08. Gross margin was 87.2% in 2Q09

MY COMMENTS:

As always, this is my view in a snapshot. It is intended to give you a running start into your research. Now, you have to do your own due diligence to make sure the valuation is not impaired by other factors including balance sheet items, lawsuits or any other negative events.

If you have any comments, I’d love to see them below.

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES

We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1. ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinse Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.

Regards,
George

Posted in China | No Comments »

ChinaSecurities.com Small-Cap Company Feature: American Oriental Bionengineering

Posted by AGORACOM-Andreas at 9:30 AM on Friday, August 7th, 2009

As many of you know, we are very bullish on the long-term future of Chinese small cap and mid cap companies for two reasons:

1] The obvious reason – China is the fastest growing economy on the planet and nothing is going to slow down its ascent over the next 50 years and beyond. Investing in growth companies there just makes too much sense.

2] Great Results and Valuations - Many Small Cap Chinese Companies are listing in the US (OTCBB, NYSE Alternext and NASDAQ) with great financial results. Unlike many dubious US Small Cap Companies, Chinese Companies don’t seem to believe in losing money or failing to execute in a business plan. As such, 7-digit revenues and profits are very common.

From a valuation point of view, many Chinese companies became a victim of their own success in Q4 2008 and Q1 2009. Why? When the world needed to start liquidating, one of the first places they looked were China where most investors had significant gains to sell into. This resulted in the proverbial baby being thrown out with the bathwater and some great valuations.

TODAY’S FEATURED COMPANY

American Oriental Bionengineering – NYSE:AOB $5.24

Aob

American Oriental Bioengineering, Inc. is a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter products in China.

On August 7th 2009, the company released its second quarter reaults for 2009.

Check out the full details below!

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

  • 2Q09 Revenue Increased 20.7% YoY to $71.2 Million
  • 2Q09 Net Income Attributable to Controlling Interest was $13.2 million or $0.17 per Diluted Share
  • Company Generates Approximately $22.9 Million of Operating Cashflow

MY COMMENTS:

As always, this is my view in a snapshot. It is intended to give you a running start into your research. Now, you have to do your own due diligence to make sure the valuation is not impaired by other factors including balance sheet items, lawsuits or any other negative events.

If you have any comments, I’d love to see them below.

YOUR RESEARCH STARTING POINTS FOR CHINESE SMALL CAP AND MID CAP COMPANIES

We’ve provided investors with two great starting points to research great Chinese small cap and mid cap companies.

1. ChinaSecurities.com – ChinaSecurities.com tracks 250 of the best small cap and mid cap companies trading on North American exchanges. It provides you with the best of the best in two ways. First, the front page lists the best news of the day coming out of the space. It does so by giving you a text view of the best press releases by industry and via Chinese Stocks TV, a 5-minute broadcast every morning just after the open. Chinse Stocks TV is archived, so you can catch up on shows you missed.

Second, if you want to research each of the 250 companies to find candidates for your portfolio, it has a very intuitive directory that lets you quickly review each company on the master list, or parse it out by industry and exchange if you have a particular sector of interest. Cool stuff.

2. Right here on AGORACOM, you can refer to our China category for other featured Chinese Small-Cap Companies. As always, we will disclose any IR relationship with any public company. Given the sheer number of great Chinese Small-Cap Companies out there, you can expect us NOT to have an IR relationship with most of these companies.

Regards,
George

Posted in China | 1 Comment »

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