China Modern Agricultural today released its projected earnings for the fiscal year ending June 30, 2012. The company’s forecasted net income will have increased by 86% year-over-year to $16.4 million, or $0.35 per basic and diluted earnings per share.
China Modern’s revenue for the first three quarters of fiscal year 2012 was $19.5 million, which represents an increase of $2.3 million, or 13%, as compared to $17.2 million for the three quarters ended March 31, 2011. The company’s gross profit increased by $4.4 million, or 52%, to $13 million. The gross profit margin has improved from 50% to 67% as compared to the same period last year. These increases are primarily due to the company’s adoption of a new business model, which provides China Modern with a revenue stream that incurs very little direct cost, thus improving the gross profit margin.
In November of 2011, China Modern successfully acquired 100% ownership of Shangzhi Yulong Cattle Industry Co. Ltd., generating a bargain purchase gain of $5.72 million that has been consolidated in the quarterly financial statements ended Dec. 31, 2011.
For the three quarters ended March 31, 2012, China Modern’s net income increased by $8.4 million, or 149%, to $14 million, as compared with $5.7 million for the three quarters ended March 31, 2011. The company’s net profit margin increased from 33% to 72%, and the earnings per share increased from $0.14 to $0.31, which was an increase of $0.17 or 120%.
The company’s projected earnings for the fiscal year ended June 30, 2012 are anticipated to be approximately $27.6 million, which represents an increase of $2.6 million, or 10%, as compared with $25 million for the same time frame in the previous year. Revenues from raw milk sales are forecasted to be $18.3 million, and sales commission from farmers is projected to be $9.3 million. The company’s forecasted gross profit is $18 million, which is an increase of $5 million, or 38%. The gross profit margin is anticipated to increase from 52% to around 65%. China Modern’s anticipated net income is $16.4 million, which represents an increase of around $7.6 million, or 86%, as compared to the same period in 2011. The company’s projected net profit margin will have increased to 59%, up from 35%, and the earnings per share is forecasted to rise from $0.23 to about $0.35, which is an increase of 52% year-over-year.
China Modern Agricultural is a high-tech livestock company that specializes in breeding cows and calves, producing and selling milk, and selling organic fertilizer directly to suppliers. The company additionally provides livestock breeders with specialized livestock technical consultation, cow breeding technical support, and agricultural information support. The company’s farmland is located in the Heilongjiang Province, which has a humid continental climate that is ideal for the growth of grass, which, in turn, is essential for grazing and feeding cattle and aids in the company’s cow and calf breeding, raw milk production, and organic fertilizer production.
For more information, visit the company’s Web site at www.hljzhongxian.com/zx/eng_zx/index.asp
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