ORLANDO, Fla., Feb. 26, 2007 (PRIME NEWSWIRE) -- RedChip Independent, a division of RedChip Companies, announced today that they have issued a research update on Zhongpin, Inc. (OTCBB:ZHNP).
Lisa Springer, CFA, MBA, RedChip Research Analyst, wrote in the report:
"Zhongpin, Inc. benefits from strong logistic capabilities and an efficient delivery system -- important advantages given China's limited transportation infrastructure. Zhongpin, Inc. maintains a fleet of 186 refrigerated trucks and rail cars and can deliver product in 24 provinces. The Company also has state-of-the-art facilities and high volume processing capacity. Zhongpin recently leased a new factory in Heilongjiang province that adds 80 metric tons to daily capacity, and plans to open two new factories in 2007 which will together add 130,000 metric tons of annual capacity, nearly doubling the Company's current capacity.
"Earnings guidance provided by Zhongpin management during the June quarter conference call forecasts 2006 revenues at $117.7 million and net income at $10.1 million. Based on the current $8 share price and 23.2 million shares outstanding, Zhongpin trades at 18 times projected 2006 earnings. We think the Company's competitive advantages and consistent track record of superior growth warrant a higher valuation and reiterate our Buy rating and $10 one-year price target for these shares."
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RedChip Independent Research Disclosure
The analysts contributing to this ZHNP RedChip report do not hold any shares of ZHNP. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. RedChip certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the ZHNP RedChip report. Additional information on the securities mentioned in this report is available upon request. This ZHNP RedChip report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the ZHNP RedChip report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change. ZHNP is not a client of RedChip Companies, Inc., or any of its affiliates.