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 COMPANYJA Solar Holdings Co. Ltd (NASDAQ: JASO)

JA Solar Holdings Co., Ltd. is a leading manufacturer of high-performance solar cells. The company sells its products to solar manufacturers worldwide, who assemble and integrate solar cells into modules and systems that convert sunlight into electricity for residential, commercial, and utility-scale power generation.

On February 11th 2010, JASO announced its financial results for its fourth quarter and full year 2009, ended December 31, 2009.

HIGHLIGHTS:

• Revenue in the fourth quarter of 2009 was 238.4 million, an increase of 23.4 percent from 193 million reported in the third quarter of 2009 and an increase of 66.2 percent from $143.4 million reported in the fourth quarter of 2008.
• Gross profit in the fourth quarter of 2009 was $48.9 million, compared $32.3 million in the third quarter of 2009 and 1.4 million in the fourth quarter of 2008.
• Gross margin was 20.5% in the fourth quarter of 2009, compared with 16.7% in the third quarter of 2009 and 1.0% in the fourth quarter of 2008.

Most importantly, the company reported earnings of $0.22/share. If you extrapolate that over the year, you have a company with ~ $0.90 EPS, yet trading at just over $5.00.  You do the math but that sounds like pretty good value to me.  Check out the full details below.

Read Full Press Release

China Stocks TV Segment

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.

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-Biotics (NASDAQ: CHBT)

China-Biotics a leading manufacturer of biotechnology products and supplements, engages in the research, development, marketing and distribution of probiotics dietary supplements. Through its wholly owned subsidiary, Shanghai Shining Biotechnology Co., Ltd., the Company has operations in Shanghai. Its proprietary product portfolio contains live microbial nutritional supplements under the “Shining” brand.

On February11th 2010, the Company announced its financial results for the third quarter of its 2010 fiscal year, ended December 31, 2009.

Check out the full details below!

Read Full Press Release

China Stocks TV Segment

THIRD QUARTER HIGHLIGHTS

• Net sales increased 47% to $23.3 million from $15.8 million a year ago
• Gross profit rose 47% to $16.5 million from $11.2 million a year ago
• Gross margin was 71%, unchanged from a year agO

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 Stocks 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]  Many Small Cap Chinese Stocks are listing in the US (OTCBB, AMEX and graduating higher) 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.

AGORACOM AS A STARTING POINT FOR CHINESE SMALL CAP COMPANIES

In addition to the featured company below, you can refer to our China category for other featured Chinese Small-Cap Companies, or view our extensive coverage of them on AGORACOM TV .  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.

TODAY’S FEATURED COMPANY

China Advanced Construction Materials (NASDAQ: CADC)

China ACM 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 February 10th 2010, China ACM announced its unaudited financial results for the fiscal year 2010 second quarter and six months ended December 31, 2009.

HIGHLIGHTS:

• Net revenue increased 141.6% year-over-year to a quarterly record $26.2 million;
• Gross profit increased 32.3% year-over-year to $5.2 million;
• Gross margin was 20.0% versus 36.5% in the same quarter last year, but higher than the 16.9% in the fiscal 2010 first quarter;
• Net income available to common shareholders increased 226.5% year-over-year to a quarterly record $7.6 million

Most importantly, the company reported earnings of $0.22/share. If you extrapolate that over the year, you have a company with ~ $0.90 EPS, yet trading at just over $5.00.  You do the math but that sounds like pretty good value to me.  Check out the full details below.

Read Full Press Release

China Stocks TV Segment

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.

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

Tianyin Pharmaceutical (NYSEamex:TPI)

Tianyin is a manufacturer and supplier of modernized Traditional Chinese Medicine (’TCM’) in China. ITianyin has an extensive nationwide distribution network throughout China with a sales force of 720 salespeople.

On February 9th 2010, announced fiscal results for its second quarter ended December 31, 2009.

Highlights

— Q2 2010 Revenue Increased 47.9% to $14.9 Million, Net Income Increased 24.8% to $2.6 Million with adjusted EPS of $0.11 on a diluted basis
— Cash and Equivalents of $19.9 Million on December 31, 2009Check out the full details below!

Read Full Press Release

China Stocks TV Segment

HIGHLIGHTS

• Revenues of $42 million and net income of at least $7.5 million, representing 25% and 26% year over year growth respectively.
• For fiscal year 2010 which ends June 30, 2010, Tianyin forecasts that revenues will exceed $59 million with net income at least $10.5 million, representing approximately 40% and 42% growth compared to fiscal 2009 forecasts.

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