Jan. 20 , 2010 (Chinavestor) We keep our eye on China stocks that are prone to move - but we re not prepared for a +27.27% advance by SkyPeople Fruit Juice, Inc. (AMEX:SPU) on Tuesday. The best pick from the current "Toast List" was Chindex International (NASDAQ:CHDX), a stock that we told Advanced members to buy on Friday at 3:30 P.M. - and then issued a sell email alert on Tuesday after the +7.5% jump. Nevertheless, we missed out on SkyPeople Fruit Juice (AMEX:SPU) - but made some research into what's going on. Based on what we see, there is a potential for the stock price to go up to $10 - assuming overall stocks market conditions remain favorable.
Important:charts and some of the information about the company came from HC International, the investors relations team of SkyPeople Fruit. While I believe the numbers provided are accurate, I can't guarantee its accuracy. Investors have to keep in mind that IR firms are paid.
SkyPeople Fruit (AMEX:SPU) advanced on Tuesday with heavy underlying volume - a very good sign from a technical point of view. From a fundamental angle, the company issued 2009 preliminary results and guided higher for 2010. When fundamentals and technicals collide, a small cap AMEX listed stocks can catch fire - as is the case with this Chinese juice maker.
INVESTMENT HIGHLIGHTS
Established in 2001, SkyPeople (AMEX:SPU) is a top-tier global supplier of fruit juice concentrate with access to the single largest kiwifruit plantation base in Asia with annual production of 200,000 tons. The plantation is located in Xi'an City and is sponsored by World Bank and listed in the category of China National 863 Program
SPU is the only company in the province with a province-supported technology center devoted to concentrated juices.
SPU’s customer base includes more than 133 global customers serviced by 62 sales and marketing professionals, 41 R&D experts and a total of 357 people on staff.
SPU plans to launch fruit juice of pomegranate and jujube juice in the near future to enhance the Company's product lines
Q3 2009 revenues increased 67.1% to $10.6 million while net income increased 75.8% to $2.1 million.
On January 19th, SkyPeople preannounced 2009 YE revenues of $58 to $60 million with net income of $15 to $16 million, 39% to 44% increase for revenues and 50% to 60% increase for net income respectively.
2010 Guidance of $92.0 - $102.0 million in revenues and $19.0 - $21.0 million in net income represent 59% to 70% and 27% to 32% respectively.
As the following pie chart testifies, SkyPeople Fruit Juice, Inc. (AMEX:SPU) is a diversified juice maker - not just a kiwi based producer.
The company is not just a Chinese domestic entity but is more international then domestic when it comes to sales. According to company figures, 69% of juice concentrate sold through 133 distributors was exported to U.S., EU and Middle East fruit juice manufacturers.
Domestic/ Export Sales
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