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 – 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

Jinpan International Ltd., designs, manufactures and distributes cast resin transformers for voltage distribution equipment in China and other countries around the world.

On May 15th, the Company announced their consolidated financial results for the first quarter ended March 31, 2009.

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

• Net sales: $32.4 million, a 36.1% increase
• Net income: $4.7 million, or $0.58 per diluted share, an increase of 94.9%

MY COMMENTS:

In the financial outlook for the full year 2009, the Company anticipates net sales of approximately $176 million to $182 million, a 14% to 18% increase. They are also expecting net income to come in between $22.5 – $23.3 million. That’s going to translate into earnings per share between $2.75 – $2.85 per share. Company closed yesterday at $20.60

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

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

Based in Shenzhen, China, FUQI International, Inc. is a leading designer of high quality precious metal jewelry in China, developing, promoting, and selling a broad range of products in China’s large and expanding Chinese luxury goods market.

On May 15th, the Company announced their financial results for the first quarter ended March 31, 2009.

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

• Revenues up 41% to $109.4 million
• Net income up 52% to $9.7 million, or $0.45 per diluted share
• Cash and Cash Equivalents of $54 million

MY COMMENTS:

I did a quick calculation regarding the last point. This means the Company’s got about $2.50 per share in CASH. So you’re buying the Company for $6.50 but they’ve got $2.50 in cash so you can really buy this business right now for $4.00 a share. That’s the calculation I’m doing but make sure you go do it too. Here’s why this is even more important. Financial outlook for the year. Revenue they are calling for between $442 – $465 million. The BIG number, net income of approximately $32 -$35 million. That will put their earnings per share between $1.49 – $1.63. If you compare this to $4.00 earnings when you strip out the cash, there is unbelievable value here unless there is something sitting in the closet so you got to make sure you do your own due-diligence. Company closed yesterday at $6.49

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

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

Founded in 1995, with profitable sales in 2008 of approximately $190 million (+25%), the Company has grown to become one of the top importers of luxury vehicles in China. Imported luxury automobiles have been the fastest growing segment of the still young Chinese automobile industry. The Company has fueled its sales and profit growth by also becoming one of China’s top logistical servicing and dealer financing companies for other automobile importers.

On May 15th, the Company announced their First Quarter numbers.

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

• Revenues up 35% to $45.1 million – Pretty good considering this is a luxury car importer. Someones gotta tell the Chinese that there is a world-wide recession going on !
• Net Income 10.09% to $1,161,183 or $0.06 per share

MY COMMENTS:

Now this is what’s important. Accounting for approximately 98% of the Company’s first quarter revenues, luxury imported auto sales gre 37.19% not only that, the average selling price per unit increased nearly 11% from &71,244 to $78,858, indicating continuing strong demand among affluent Chinese consumers for bigger cars, despite the economic environment. Now that’s GREAT meta-data right there. It’s a great indication of what’s going on in China and how it’s being affected by what’s going on around the world. The Company has grown to become one of the top importers of luxury vehicles in China. The Company closed yesterday at $3.90

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

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

SinoHub’s business was founded in 2000 by veteran entrepreneur Harry Cochran and electronic component industry veteran Lei Xia to participate in the rapid growth of the electronics business in China. The company is engaged in electronic component sales and provides world-class supply chain management services with transparent information access for participants in the electronic components supply chain in China.

On May 15th, the Company reported another quarter of strong performance for the three months ended March 31, 2009.

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

• Total revenues: $18.1 million which represents a 56% increase.
• Net income: $2.0 million. That’s an 83% increase.
• As of March 31, SinoHub had $4.9 million in non-restricted cash and cash equivalents.

MY COMMENTS:

Going back to the net income of $2.0 million, that’s important when you consider the fact that their weighted average shares that they are comparing to last year is actually up 30% so they had a big quarter there. The Company closed yesterday at $2.50

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

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 Valves Technology, Inc. is engaged in development, manufacture and sale of high-quality metal valves for the electricity, petroleum, chemical, water, gas and metallurgy industries.

On May 15th, the Company announced their financial results for the first quarter ended March 31, 2009 of its fiscal year 2009.

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

• Net revenue was $17.2 million, an increase of 32.8%
• Gross Profit was $8.3 million, an increase of 63.0%
• Net income was $3.0 million, or $0.05 per diluted share, compared to $1.8 million, or $0.04 per diluted share last year
• The Company also has $16.3 million in cash and cash equivalents

MY COMMENTS:

Here’s what I also like. The Company currently has an order backlog by the middle of this year. So you can see that revenue, that’s going to be on the top-line in this years financial results. Company closed yesterday at $2.35

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

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 ACM, founded in 2002 and based in Beijing, China, is a leading 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.

On May 15th, the Company announced their financial results for the three months ended March 31st, 2009.

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

• Revenues increased to $9.3 million from $6.8 million during the same time last year.
• Gross profit was $3.9 million compared to $1.8 million.
• Net income increased to $2.3 million, or $0.16 per diluted share, compared to net income of $1.3 million, or $0.15 per diluted share, for the same quarter last year.

MY COMMENTS:

Here’s the most important thing. The Company also expects to remain on track to achieve net income of at least $9 million for fiscal 2009. Why is that important?? The Company’s got 10.5 million shares outstanding, $9 million in net income, that’s $0.85 per share. The Company closed yesterday at $2.50 so based on what the Company is telling us, they are going to be trading at just 3 times earnings right now so that’s pretty good value.

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

Readers of this blog or viewers of AGORACOM Small Cap TV are well aware of the fact we are very bullish on Chinese small-cap and mid-cap companies.  I’m bullish on China for 2 big reasons:

1. OBVIOUS – China is going to be the place to be for the next 5, 10, 20 years.  If you’re looking for growth and some real home-runs, this is where you are going to find them
2. NOT OBVIOUS – Chinese stocks have been smashed over the past 12 months as funds used their huge gains on Chinese stocks to liquidate and raise cash.  In other words, Chinese companies were a victim of their own success.

If you feel the same way, then you need to know about a great one-day conference in New York City on May 18th – The China Rising Investment Conference.  Here is why you need to attend:

• Market meltdown has created opportunities to invest in outstanding Chinese companies
• Analyst roundtable will include some of the best informed analysts currently following Chinese equities.
• Analysts will be providing their top picks for 2009.
• Listen to successful China investing strategies from leading public and private equity investors.
• Meet senior management from 30 companies that will be presenting from various sectors and market caps.

The conference runs from 8AM – 4PM EST.  If you are in and around New York City, or seriously interested in investing in China, you should attend this conference.

Regards,
George