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
Trina Solar Limited (NYSE: TSL) is a well recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is one of the few PV manufacturers that has developed a vertically integrated business model from the production of monocrystalline and multicrystalline ingots, wafers and cells to the assembly of high quality modules.
On February 24th, 2010, Announces Fourth Quarter and Fiscal Year 2009 Results
Check out the full details below!
HIGHLIGHTS
Fourth Quarter 2009 Financial and Operating Highlights
- Net revenues were $313.3 million, an increase of 25.4% sequentially and 44.8% year-over-year
- Gross margin was 32.6%, above the Company’s guidance of 25% to 27%Â compared to 28.5% sequentially and 9.6% year-over-year
- Operating income and operating margin were $64.4 million and 20.6%, respectively, compared to $45.5 million and 18.2%, respectively, in the third quarter of 2009
- Net income was $49.2 million, compared to $40.1 million in the third quarter of 2009
Full Year 2009 Results Financial and Operating Highlights
- Total net revenues were $845.1 million, an increase of 1.6% from 2008
- Gross profit was $237.2 million, an increase of 44.2% from 2008
- Gross margin was 28.1%, compared to 19.8% in 2008
- Net income for the full year was $97.6 million, an increase of 59.0%Â from 2008
- Earnings per fully diluted ADS for 2009 were $1.68, compared to $1.20Â in 2008
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
