China Carbon Graphite CHGI is on our top watch list at www.greenbackers.com . CHGI is in a rapidly growing graphite metals market in China and worldwide.
| P/E (ttm): |
6.32 |
|---|
| EPS (ttm): |
0.13 |
|---|
(pe based on pps @ $ .79)
We are tracking CHGI alot closer, due in part to very strong earnings data recently, and to a new plant opening latter this summer that will double capacity (and revenues).
China Carbon Graphite Group Releases First Quarter 2011 ResultsGlobeNewswire(Tue, May 17)
- Revenue increased 137%, from $4.85 million in Q1 2010 to $11.46 million in Q1 2011
- EBITDA improved 155% from $0.99 million in Q1 2010 to $2.52 million in Q1 2011
- Net income grew 139%, from ($0.86 million) in Q1 2010 to $0.33 million in Q1 2011
- Adjusted net income rose 91%, from $0.33 million in Q1 2010 to $0.63 million in Q1 2011
Donghai Yu, China Carbon's CEO, said, "As we expected, our first quarter results were excellent. In particular, we are very pleased with the significant improvement in our EBITDA, which increased 154 percent. We successfully adjusted our product mix in the first quarter of 2011 to capitalize on market demand....Notably, our sales benefited from the increasing applications for our higher margin products...
Another related story on earnings that shared additional, especially on the upcoming plant opening this summer.
China Carbon Graphite Group, Inc. Expects to Report Strong Sales Momentum for the First Quarter of 2011GlobeNewswire(Thu, May 5)
Excerpts: the Company anticipates reporting a considerable increase in revenue for the first quarter of 2011 as compared with the same quarter of 2010....China Carbon's preliminary, unaudited revenue during the first quarter of 2011 was approximately $11.6 million USD, reflecting an increase of approximately $6.7 million USD or 138%.......This substantial improvement in revenue is due to its doubled capacity and the significant increase in the sales of its high margin products.....The notable rise in the commodity prices associated with carbon graphite is being driven in large part by the mounting demand for carbon graphite, which is in turn being driven by increased manufacturing associated with global economic growth. At this time, China Carbon plans to accommodate by expanding its current operations and the Company estimates that the construction of its new baking plant--which is expected to boost its annual production capacity from 30,000 tons to 60,000 tons--will be completed by June 2011 and fully operational by August 2011
Back on April 18th, 2011, CHGI announced another stellar earnings rpt
China Carbon Graphite Group Releases 2010 Financial ResultsGlobeNewswire(Mon 8:30AM EDT)
Highlights within the rpt:
Revenue increased 102%, from $15.4 million in 2009 to $31.0 million in 2010
Gross profit increased 218%, from $2.2 million in 2009 to $6.9 million in 2010
Gross profit rate increased 57.86%, from 14.17% in 2009 to 22.36% in 2010
Operating income increased 383%, from operating loss of ($0.9 million) in 2009 to operating income of $2.4 million in 2010
Net income increased 194%, from net loss of ($1.5 million) in 2009 to net income of $1.4 million in 2010
Additional excerpts:
....such robust growth and excellent results in 2010," said Donghai Yu, Chief Executive Officer of China Carbon. "We are especially proud to have increased our net income by over 190 percent and operating income by over 380 percent compared to 2009. We are glad to see increased revenue from expanded customer base due to market recovery and doubled production capacity, improved margin due to a higher margin product mix, as well as strong financing support from banks."
"Our core products all sold extremely well in 2010. Notably, we sold a greater proportion of our higher margin products.....high purity graphite sales rose over 500 percent. ....Regarding forecast: we expect the demand for and our supply of our higher margin graphite products to both continue to rise in 2011."
The stock has been seeing a turnaround this week near 1.30 mainly on the recent news. Back in Jan the stock ran strong to 2.55.
Earlier in the year ( March 2nd ), NBT Equity Research came out with very bullish report on the stock you might want to check into.
Highlights in the report include:
1) Quarterly Revenue Growth of 78% (year-over-year)
2) $9.1M in revenue Q3 2010
3) Discover macro trends on the nuclear power sector
4) New facts and figures from CHGI and sources such as the WORLD NUCLEAR ASSOCIATION
On Feb 15th the stock issued another press release where upon the company will increase their mining capacities in Inner Mongolia.
China Carbon Graphite Group, Inc. to Integrate Natural Graphite MinesGlobeNewswire(Tue 10:00AM EST)
In light of China's increasingly restrictive posture on rare earth and other important resources, as well as world dependency on China for graphite supply (it has been reported that China exports over 70% of world's graphite every year), graphite is on course to become a very important strategic resource. As one of the few listed companies in the graphite industry,the Company has the state-of-art technology in quality control and environment protection, and expects to enjoy sustained and rapid growth in the near future, since the new restrictions are expected to eliminate those less efficient competitors in this industry.
Going back further, the stock also came out with some very bullish new plant related news, related to doubling capacity with the new plant and the fact it will be the most technologically advanced in China.
China Carbon Graphite Group, Inc. Completes Construction of Its New 30,000-Ton Production Facility Jan 24, 2011
Excerpts: According to the Company, this new plant will have the largest and the most technologically advanced equipment in China capable of producing ultra-high electrodes with a diameter as large as 800 mm, and rounded fine grain electrodes with a diameter as large as 600 mm. The demand of these two types of graphite products is currently overwhelming
....our production capacity will be doubled from our current level," said Donghai Yu, China Carbon's CEO. ....will solidify its status as one of the most significant manufacturers of graphite and related products in China."
Other bullish articles on CHGI at Examiner.com:
Graphite: Next Play in China at TheStreet.com(Wed, Jan 12)
Graphite: A Diamond in the Rough for Investors?at Seeking Alpha(Thu, Dec 30
Currently, the iron and steel industries are the largest consumers of graphite. But demand for graphite has been rising for other applications — researchers in the field of material science continue to find new uses for this durable, heat-resistant, electricity-conducting substance. Graphite will be used in the construction of next-generation nuclear reactors, which are expected to reach temperatures as high as 1,000 degrees Celsius in their cores — triple the temperature of today’s reactors.
Graphite is one of the few substances that can resist such heat.
Emerging fuel cell technologies also rely heavily on graphite.
Perhaps the single greatest testimony to graphite’s importance is the concern that governmental bodies have shown about its important role in security. A 2010 European Commission study regarding the criticality of 41 different materials to the European economy included graphite among the 14 materials high in both economic importance and supply risk. A recent WikiLeaks posting revealed that a list known as the Critical Foreign Dependencies Initiative developed by the U.S. Department of Homeland Security and the State Department included graphite mines in China among those overseas sites that could damage American interests if terrorists were to disable them. The U.S. military will also increasingly rely on graphite for battery and fuel cell applications, as the armed forces lessen their dependence on petroleum.
Technically, intermediate term, the stock ran from .80 to 2.50 earlier in 2011.....It pulled all the way back to .90, but has been experiencing a turnaround lately and could take off as is establishing traction.
Bottom Line: Outlook increasingly bullish with the latest earnings rpt as well as the upcoming plant opening. Highly debate this beaten down moving foward as we've been stating in recent newsletters at www.greenbackers.com . Target a jump back above a buck initially and doubling into year end.
