It is no secret that I am extremely bullish on Chinese Small-Cap stocks for the long run. Quite simply, I love them for a few reasons. On a macro level, China is unstoppable. On a micro level, Chinese companies tend to run real businesses with real products, customers, revenues and profits.
As such, if you’re a successful Chinese small-cap company today, you have a good chance at being an incredibly big company tomorrow. In the same breath, investors have an opportunity to grow and propsper from the rise of a new economic powerhouse. An opportunity that only comes about every couple hundred years. I want to be a part of that and so should you.
One company investors should be considering is AGORACOM client, China Advanced Construction Materials. If you assume I am horribly conflicted (which you should) then let the latest Q2 numbers speak for themselves.
A little background info first. 80% of China ACM revenues are directly derived from major state-owned construction companies. China ACM is a producer of advanced construction materials for large scale commercial, residential, and infrastructure developments. The company is primarily focused on producing and supplying a wide range of advanced ready-mix concrete materials for highly technical, large scale, and environmental construction projects
Financial Highlights for Q2 Ended December 31, 2008
- Revenue increased 52% to $10.8 million, up from $7.1 million in the corresponding period in 2007.
- Gross profit increased by 169% to $4.0 million, compared with gross profit of $1.5 million for the same period in 2007.
- Net income increased 73% to $2.6 million, as compared to a $1.5 million for the same period in 2007. This translates into 19 cents per share.
- Company guidance is for full year Net Income of $9 million.
Read Full Press Release
Go To China ACM IR HUB
Regards,
George