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 TechFaith Wireless Communication Technology Limited (Nasdaq: CNTF)
TechFaith (NASDAQ:CNTF – News) is a China-based original developed product (“ODP”) provider focused on the original design and sales of mobile phone products. TechFaith aims to become a branded mobile phone specialist in differentiated market segments in the China market. TechFaith is also striving to build a leading PC and online gaming business through its wholly-owned subsidiary, 798 Entertainment Limited
On March 2nd, the Company announced its unaudited financial results for the fourth quarter and the full year ended December 31, 2010.
Check out the full details below:
Highlights:
- 4Q10 revenue increased 29% from 4Q09 to US$76.9 million.
- 4Q10 income from operations increased 317% from 4Q09 to US$12.1 million.
- 4Q10 net income increased by 187% from 4Q09 to US$8.9 million, representing US$0.17 per basic and diluted weighted average outstanding ADS for 4Q10 compared to US$0.07 and US$0.07, respectively, for 4Q09.
- FY10 revenue increased by 29% from FY09 to US$271.9 million.
- FY10 net income increased by 333% from FY09 to US$27.3 million, representing US$0.56 and US$0.50 per basic and diluted weighted average outstanding ADS for FY10 compared to US$0.15 and US$0.14, respectively, for FY09.
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