Zhongpin - Very Good Earnings but No One Cares
We continue to wallow in stocks growing 100% a year but trading at 10-15x forward earnings.... watching the junk of the market, in some cases growing 5-15% and in some cases shrinking, being run up 30-40-50%, while some of our holdings die on the vine is an exercise in frustration.
Zhongpin (HOGS) put out yet another astounding quarter but if a company executes in a forest and its doesn't have subprime, American consumer, or fuel cost exposure does anyone care? We've held this stock for quarters now and the stock price has barely budged. Maybe when it trades at forward P/E of 6 on 100%+ growth it can go up 5%. Or if it goes into the airline business.
- Revenues increased $73.8 million, or 116.0%, to a record $137.5 million from $63.7 million in the second quarter of 2007. The significant increase in revenue was due to increases in prices and sales of the Company's pork and pork products resulting primarily from increased sales to food services distributors and to restaurants and non-commercial customers. (keep in mind one facility in Sichuan province was closed for a month during the quarter due to earthquake)
- During the second quarter of 2008, the volume of pork products sold increased 47.7% from the second quarter of 2007. For the quarter, chilled pork sales increased 118.7% to $71.9 million from $32.9 million in the second quarter of 2007. Sales of chilled pork accounted for 52.3% of net sales during the quarter, up from 51.6% a year ago. Revenue from frozen pork was $49.0 million, up 120.5% from $22.2 million in the second quarter of 2007, accounting for 35.6% of net sales compared with 34.9% in the second quarter of last year. Prepared pork products increased 121.2% to $13.2 million from $6.0 million in the same period a year ago. Revenue from fruits and vegetables, which accounted for 2.5% of total revenues, was $3.4 million, up 30.9% from $2.6 million in the second quarter of 2007.
- Gross profit in the second quarter of 2008 was a record $17.1 million, up 109.2% from $8.2 million in the second quarter of 2007.
The above story is the opinion of the author only and it does not reflect
iStockAnalyst opinion. Further, the author is not personally advising you
regarding the suitability of the story for your investment needs. In no event
iStockAnalyst will be liable for any loss or damage including without
limitation, indirect or consequential loss or damage, or any loss or damage
whatsoever arising from or arising out of, or in connection with the use of this
information. Please consult your investment advisor before making any investment
decision.
