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 - Despite some real problems in the Chinese small-cap space, we continue to believe that too many companies have suffered from “babies being thrown out with the bathwater” syndrome. Investors have to remain patient and wait for the smoke to clear – but when it does we see a great opportunity to profit from the real companies that have been left standing. As such, we’re going to continue reporting and remaining patient.
TODAY’S FEATURED COMPANY
Nutrastar International Inc. (OTC Bulletin Board: NUIN)
Nutrastar is a China based leading producer and supplier of premium branded TCM consumer products including commercially cultivated Cordyceps Militaris and functional health beverages. Cordyceps Militaris is one of the most highly regarded herbal nutrients in TCM. The Company believes it is the largest manufacturer of bioengineered Chinese Golden Grass in China, ranked by volume, according to China Market Monitoring Center (CMMC), accounting for approximately 19% market share in China.
On November 10th 2011, announced financial results for the three months ended September 30, 2011.
Highlights for the Three Months Ended September 30, 2011:
- Revenues increased 47.9% to $9.56 million
- Gross profit increased 39.4% to $7.36 million, a gross margin of 77.0%
- Net income rose 22.5% to $4.98 million, representing a net margin of 52.1%
- Basic earnings per share (“EPS”) was $0.33; Diluted EPS was $0.30
Highlights for the Nine Months Ended September 30, 2011:
- Revenues increased 38.0% to $23.04 million
- Gross profit increased 30.8% to $17.74 million, a gross margin of 77.0%
- Net income rose 16.5% to $11.89 million, representing a net margin of 51.6%
- Basic EPS was $0.79; Diluted EPS was $0.73
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.