AGORACOM Small-cap Investor Relations Blog

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 - Despite some real problems in the Chinese small-cap space, we continue to believe that too many companies have suffered from “babies being thrown out with the bathwater” syndrome.  Investors have to remain patient and wait for the smoke to clear – but when it does we see a great opportunity to profit from the real companies that have been left standing.  As such, we’re going to continue reporting and remaining patient.

TODAY’S FEATURED COMPANY

Nutrastar International Inc. (OTCBB: NUIN)

Nutrastar is a China based leading producer and supplier of premium branded consumer products including commercially cultivated Cordyceps Militaris, functional health beverages as well as specialty and organic foods. Cordyceps Militaris is one of the most highly regarded herbal nutrients in Traditional Chinese Medicine. The Company is headquartered in Harbin, capital of Heilongjiang Province, with 332 employees, including 21 in R&D, and 149 in sales and marketing.

On March 28th 2012 the company Announces Record Full Year 2011 Results

First Quarter 2012 Highlights

• Revenues increased 41.1% to $34.21 million compared to $24.24 million in the year ended December 31, 2010.
• Gross profit increased 32.4% to $25.96 million, up from $19.6 million in the comparable 2010 year, representing a gross margin of 75.9%.
• Net income rose 26.3% to $17.00 million, up from $13.44 million in 2010, representing a net margin of 49.7%.
• Basic and diluted EPS were $1.12 and $1.04, respectively with 14.78 million basic shares and 16.34 million diluted shares outstanding.

Read Press Release

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. Chinese 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

The problems with some Chinese Reverse Merger companies are well documented …. but if there was ever an example of babies being thrown out with the bathwater, it is the valuation hits being taken by all Chinese small-caps across the board.   There is no doubt that investors are going to have to be vigilant about any investments made in the space … but one can’t ignore the fact that some incredible opportunities are now presenting themselves as well.

CHINA 2.0

Borrowing from the concept of Web 2.0, in which we saw the implosion of the dot-com bubble, followed by the resurgence of “real” dot-coms and massive subsequent share gains, I fully expect to see the same thing happen with Chinese small-cap stocks.  Specifically, we’re going through the implosion of China 1.0 small-cap stocks right now, thanks in large part to reverse merger frauds.  This won’t last forever.  Eventually – and we are well on our way there –  the scam companies will be discovered and dismissed.

When the dust settles, we are going to find two kinds of companies.  First, existing “real” companies trading at ridiculously cheap valuations.  I see massive gains being made in these companies over the next 24 months (think Aamzon and eBay).  Second, we are going to see new “real” companies starting to list on American Exchanges with great fundamentals and fast growth stories (think Google and LinkedIn).

Investors that keep their eyes and due diligence open today stand to potentially make Web 2.0 style gains in the coming years from cheap Chinese small cap stocks.

Below are just a few I’ve discovered over the past year … and I’m going to keep a rolling list going forward. Today’s new addition is China Botanic Pharmaceuticals (see my notes below)

If you wish to see original entries for each of these companies, just click on my Cheap China Small Cap Stocks category to see each entry and accompanying notes.  Moreover, I have covered these companies on Chinese Small-Cap TV (Today’s Show) (Archives).

CONCLUSION

Babies are being thrown out with the bathwater in the Chinese Small-Cap Space. I don’t see any need to rush into them as I expect this period of lost confidence to extend into the late summer at the very least. On the other hand, I see plenty of reason to begin building positions in these and other candidates over the next few months for long-term holds.

You will note I have a column for “extrapolated” EPS over the entire year. This assumes these companies will continue to generate EPS at the pace on the day we covered them. Yes, this is a major assumption … but it also assumes these companies won’t be increasing EPS over the current fiscal year as well.   That’s  a pretty big trade off considering they are more likely to grow EPS than remain stagnant or even drop.

With those assumptions out of the way, the prevailing theme seems to be P/E multiples of ~ 3.5X. That is damn cheap for any company, let alone companies that are growing their top and bottom lines by 40, 50, 60, even 100%.

In the case of of China Botanic Pharmaceutical, the company has actually provided earnings guidance of ~ $33,000,000 for 2012.  That translates into about $0.88 EPS for fiscal 2012.  At a current price of just $0.75 the company is trading at 1.2 X EPS.   That is not a typo …. 1.2

CHINA BOTANIC PHARMACEUTICAL NOTES

The company released their Q1 numbers for the period ended January 31, 2012.  Here are the highlights:

First Quarter 2012 Highlights

• Net sales increased 24.4% year over year to $28.1 million
• Gross profit increased 25.4% to $17.3 million from $13.8 million in the first quarter of fiscal 2011
• Gross margin increased to 61.6% from 61.1% in the year ago period
• Net income rose 12.4% to $12.3 million, or $0.33 per diluted share, from $10.9 million, or $0.29 per diluted share, in the first quarter of fiscal 2011

At a market cap of just $28,000,000 as of Friday, the company is ridiculously cheap by ever metric.  For example, it is essentially trading at 1X revenue after just the first quarter of revenue.  Add that to 1.2X EPS at this point and CBP is super cheap.

Financial Condition

As of January 31, 2012, China Botanic had cash of approximately $21.4 million and total current assets of approximately $70.6 million. The Company had working capital of approximately $56.9 million on January 31, 2012, as compared to $40.8 million at the fiscal year end of October 31, 2011.

If the company has $21.4 million in cash on hand, you are buying the actual business for just $7,000,000 ($28M market cap – $21M cash)., which makes the revenue multiple and EPS multiples above so cheap it is almost embarrassing.

Business Outlook

For fiscal year 2012, China Botanic reaffirms its guidance of revenues of between $91.6 million and $93.1 million, representing an increase of 26% to 28% over fiscal year 2011 revenue of $72.7 million. Revenue growth is expected to be driven largely by sales volume increases from the existing product portfolio. The Company expects net income to be in the range of $32.7 million to $33.2 million

Not only are you buying the current company at embarrassingly cheap multiples, you are also buying its growth for even less.

CONCLUSION

Unless China Botanic Pharmaceutical is about to be shut down as a major reverse merger fraud scam, investors stand to make a lot of money from any investment in it.

* I have no share position or affiliation with the company.  I would really like to change that on both fronts over the coming weeks and months.

Regards,

George

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 - Despite some real problems in the Chinese small-cap space, we continue to believe that too many companies have suffered from “babies being thrown out with the bathwater” syndrome.  Investors have to remain patient and wait for the smoke to clear – but when it does we see a great opportunity to profit from the real companies that have been left standing.  As such, we’re going to continue reporting and remaining patient.

TODAY’S FEATURED COMPANY

China Botanic Pharmaceutical Inc. (NYSE AMEX: CBP)

China Botanic Pharmaceutical Inc. is engaged in the research, development, manufacturing, and distribution of botanical products, bio-pharmaceutical products, and traditional Chinese medicines (“TCM”), in the People’s Republic of China. All of the Company’s products are produced at its three GMP-certified production facilities in Ah City, Dongfanghong and Qingyang.

On March 19th 2012 the company announced financial results for the three months ended January 31, 2012.

First Quarter 2012 Highlights

• Net sales increased 24.4% year over year to $28.1 million
• Gross profit increased 25.4% to $17.3 million from $13.8 million in the first quarter of fiscal 2011
• Gross margin increased to 61.6% from 61.1% in the year ago period
• Net income rose 12.4% to $12.3 million, or $0.33 per diluted share, from $10.9 million, or $0.29 per diluted share, in the first quarter of fiscal 2011

Read the full story

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. Chinese 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

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 - Despite some real problems in the Chinese small-cap space, we continue to believe that too many companies have suffered from “babies being thrown out with the bathwater” syndrome.  Investors have to remain patient and wait for the smoke to clear – but when it does we see a great opportunity to profit from the real companies that have been left standing.  As such, we’re going to continue reporting and remaining patient.

TODAY’S FEATURED COMPANY

China TechFaith Wireless Communication Technology Limited (NASDAQ:CNTF)

TechFaith (NASDAQ: CNTF) has three primary businesses. The Company is a leading global ODP (Original Developed Product) provider for global mobile handsets market. Under its TecFace brand, the Company is a leading developer of specialized mobile phones for differentiated market segments, including the rapidly growing Smartphone market targeting users and Operators through its TecFace brand; Outdoor and Sports enthusiasts through its Jungle brand; and the Teen market through licensed brands. Under the Company’s 17Vee brand, the Company has built a leading, intellectual property based somatic gaming business ranging from Bluetooth enabled somatic gaming controllers and software to a recently launched proprietary set-top somatic game box.

On February 29th 2012, the company Reported its Fourth Quarter and Full Year 2011 Financial Results

4th Quarter Highlights:

• net revenue of US$81.7 million, a 6.2% increase compared to US$76.9 million
• Net income attributed to TechFaith for the fourth quarter of 2011 was US$2.7 million or US$0.05 per basic and diluted weighted average outstanding ADS, compared to US$8.9 million or US$0.17 per basic and diluted weighted average outstanding ADS in the fourth quarter of 2010.

Full Year 2011 Highlights:

• net revenue of US$323.8 million, a 19.1% increase compared to US$271.9 million for the full year 2010
• Gross profit for the full year 2011 was US$85.2 million, a 27.0% increase compared to US$67.1 million for the full year 2010
• Gross margin for the full year 2011 was 26.3% compared to 24.7% for the full year 2010.
• Net income for the full year 2011 was US$27.1 million or US$0.51 per basic and diluted weighted average outstanding ADS, compared to net income of US$27.8 million or US$0.57 and US$0.50 per basic and diluted weighted average outstanding ADS for the full year 2010.

Read Full Press Release

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. Chinese 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

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.

TODAY’S FEATURED COMPANY

China BAK Battery (NASDAQ:CBAK)

China BAK Battery, Inc. is a leading global manufacturer of lithium-based battery cells. The Company produces battery cells that are the principal component of rechargeable batteries commonly used in cellular phones, notebook computers and portable consumer electronics such as digital media devices, portable media players, portable audio players, portable gaming devices, and PDAs. China BAK Battery, Inc.’s production facilities, located in Shenzhen and Tianjin, PRC, cover over three million square feet and have been recently expanded to support the production of larger batteries for various types of vehicles.

On February 7th, 2012, CBAK announced its financial results for the first quarter of fiscal year 2012 ended December 31, 201.

Read Full Press Release

Recent Achievements and Highlights

• Revenue increased 12.9% year-over-year to $71.8 million in the first quarter of fiscal 2012
• Gross profit was $14.0 million, up 40.4% from $10.0 million in the first quarter of fiscal 2011
• Gross margin significantly improved to 19.6% from 15.7% a year ago
• China BAK reported another quarter of positive cash flow of $5.6 million from operating activities

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. Chinese 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

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 - Despite some real problems in the Chinese small-cap space, we continue to believe that too many companies have suffered from “babies being thrown out with the bathwater” syndrome.  Investors have to remain patient and wait for the smoke to clear – but when it does we see a great opportunity to profit from the real companies that have been left standing.  As such, we’re going to continue reporting and remaining patient.

TODAY’S FEATURED COMPANY

China Modern Agricultural Information Inc.  (OTCBB: CMCI)

China Modern Agricultural Information, Inc. is a high-tech livestock company specializing in the breeding of cows and calves, the production and sale of milk, the sale of organic fertilizer, as well as the promotion of agricultural information.

On December 1st 2011, announced financial results for the three months ended September 30, 2011.

Highlights:

• The company has signed the merger agreement to transfer 100% equity interest of Shangzhi Yulong.
• The acquisition is expected to increase fresh milk production capacity by 30,000 tons per year to 110,000 tons, an increase of 38%, and generate $13 million in revenue and $5 million in net income for the 2012 fiscal year.

Read Full Press Release

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. Chinese 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

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 - Despite some real problems in the Chinese small-cap space, we continue to believe that too many companies have suffered from “babies being thrown out with the bathwater” syndrome.  Investors have to remain patient and wait for the smoke to clear – but when it does we see a great opportunity to profit from the real companies that have been left standing.  As such, we’re going to continue reporting and remaining patient.

TODAY’S FEATURED COMPANY

China Health Resource, Inc. (OTCBB: CHRI)

China Health Resource, Inc. engages in the development, manufacturing, processing, marketing and sale of Dahurian Angelica Root (DAR) and is only the provider of GAP quality product in the People’s Republic of China under the registered Trademark Chuan Baizhi™. DAR, which is also known as “Bai Zhi” in Mandarin Chinese, is an herb that is employed as an ingredient in medicine, cosmetics and food, as well as used in TCM for the treatment of pain, swelling and pustule.

On November 22nd 2011, announced financial results for the three months ended September 30, 2011.

Third Quarter 2011 Highlights:

• China Health Resource, Inc. (OTCBB: CHRI), a producer and supplier of Traditional Chinese Medicine (TCM) products, announced robust record breaking quarterly earnings for September 2011. CHRI reported over $9.3 million in revenues and $1.8 million in net income, a 219% increase in revenues and a 141% increase in profits from the third quarter of 2010.
• CHRI has maintained its profitability with a gross profit margin for the first three quarters of 2011 of 30% and net profit margin of 20%, compared to 33% of gross margin and 17% of net profit margin for the first three quarters of 2010.

Read Full Press Release

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. Chinese 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

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 - Despite some real problems in the Chinese small-cap space, we continue to believe that too many companies have suffered from “babies being thrown out with the bathwater” syndrome.  Investors have to remain patient and wait for the smoke to clear – but when it does we see a great opportunity to profit from the real companies that have been left standing.  As such, we’re going to continue reporting and remaining patient.

TODAY’S FEATURED COMPANY

China Mass Media (NYSE:CMM)

As a leading television advertising company in China , the Company provides a full range of advertising services, including advertising agency services, creative production services, public service announcement sponsorship services, and other value added services. The Company currently offers approximately 41 minutes of advertising time slots per day on CCTV Channels 1, 2, and 4. CCTV is the largest television network in China . The Company has produced over 400 advertisements and has won a number of prestigious awards in China and across the world, including the “Gold World Medal” at The New York Festivals® International Television & Film Awards.

On November 21st 2011, announced financial results for the three months ended September 30, 2011.

Third Quarter 2011 Highlights:

• Total net revenues were  US$9.0 million , an increase of 5.1% from the third quarter of 2010 and an increase of 11.3% from the second quarter of 2011.
• Operating income was US$2.6 million , an increase of 35.1% from the third quarter of 2010 and an increase of 17.7% from the second quarter of 2011.
• Net income was US$2.2 million , an increase of 117.8% from the third quarter of 2010 and an increase of 24.8% from the second quarter of 2011.
• Net cash outflows from operating activities were US$24.8 million

Read Full Press Release

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. Chinese 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

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 - Despite some real problems in the Chinese small-cap space, we continue to believe that too many companies have suffered from “babies being thrown out with the bathwater” syndrome.  Investors have to remain patient and wait for the smoke to clear – but when it does we see a great opportunity to profit from the real companies that have been left standing.  As such, we’re going to continue reporting and remaining patient.

TODAY’S FEATURED COMPANY

China Medical Technologies, Inc. (NASDAQ:CMED)

China Medical Technologies, Inc. is a leading China -based advanced IVD company using molecular diagnostic technologies including Fluorescent in situ Hybridization (FISH) and Surface Plasmon Resonance (SPR) and an immunodiagnostic technology, Enhanced Chemiluminescence Immunoassay (ECLIA), to develop, manufacture and distribute diagnostic products used for the detection of various cancers, diseases and disorders as well as companion diagnostic tests for targeted cancer drugs. .

On November 18th 2011, announced financial results for the three months ended September 30, 2011.

Highlights

• The Company reported net revenues of US$37.4 million  for 2Q FY2011, representing an 18.1% increase from the corresponding period of FY2010.g
• ross margin was 64.9% for 2Q FY2011 which increased year-over-year from 55.2% for the corresponding period of FY2010.
• Net income was US$5.2 million  for 2Q FY2011, compared to net loss of US$ 0.46 million for the corresponding period of FY2010.
• Non-GAAP net income was US$14.0 million )for 2Q FY2011, representing a 36.9% increase from the corresponding period of FY2010.

Read Full Press Release

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. Chinese 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