ORLANDO, Fla., Dec. 3, 2009 (GLOBE NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc., today announced it has issued a first quarter fiscal year 2010 research note on Longwei Petroleum Investment Holding Ltd. (OTCBB:LPIH), a diesel, gasoline, fuel oil, and solvent oil distributor operating in China's Shanxi Province.
Rahul Sowani, Research Analyst for RedChip, reported:
"Longwei's 1QFY10 performance was better than expected and the top line will further strengthen as the new Gujiao facility becomes fully operational. Management is expecting an additional $40 million in revenue and $6 million in net profit in FY10 which we believe is attainable given the vast customer base available in Gujiao. With strong macro-economic indicators of the Chinese economy and the Gujiao facility development nearing completion, we expect Longwei to strengthen its current market position and aggressively pursue additional market share in Shanxi Province."
Sowani continued: "We are reiterating our Strong Buy rating and raising our target price to $5.00 on LPIH shares as we anticipate the rebound in China's economy coupled with the sizeable near-term increase in the Company's capacity to significantly enhance revenues and earnings beginning in the second half of FY10. We will however continue to closely monitor the effect of the Chinese government's measures targeted at curbing pollution in the Shanxi province as well as any announcements regarding the acquisition of new customers for the additional capacity that the Gujiao facility will offer."
To receive a complimentary copy of the RedChip Visibility Research Report for Longwei, please visit:
http://www.redchip.com/about/aboutmain.asp?pg=vr&rid=206
About RedChip Companies, Inc.
RedChip Companies is an international, small-cap research and financial public relations firm with offices in Orlando, Florida; Shanghai; and Paris, with affiliates in Atlanta and New York. RedChip delivers concrete, measurable results for its clients through its extensive national and international network of small-cap institutional and retail investors. RedChip has developed the most comprehensive platform of products and services for small-cap companies, including: RedChip Research(TM), Traditional Investor Relations, Digital Investor Relations, Institutional and Retail Conferences, RedChip Internet TV(TM), and RedChip Radio(TM). To learn more about RedChip's products and services please visit: http://www.redchip.com/visibility/productsandservices.asp.
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Disclosure
None of the profiles issued by RedChip Companies, Inc., constitutes a recommendation for any investor to purchase or sell any particular security or that any security is suitable for any investor. Any investor should determine whether a particular security is suitable based on the investor's objectives, other securities holdings, financial situation needs, and tax status. This report does not provide all information material to an investor's decision about whether or not to make any investment. Securities have an inherent risk and are not suitable for all investors. This report was prepared for informational purposes only and was paid for by the company portrayed in the report. Longwei Petroleum Investment Holding Limited, paid RedChip Visibility, a division of RedChip Companies, Inc., thirty thousand dollars for RedChip Visibility Program services, which included the preparation of this equity research report.
RedChip Companies, Inc. is currently engaged by this company to provide investor awareness services. Investor awareness services and programs are designed to help small-cap companies communicate their investment characteristics. For the twelve month period March 2009 through March 2010, LPIH agreed to pay RedChip Companies, Inc. a monthly fee of fifteen thousand dollars in cash and one and a half million shares of Rule 144 stock for investor relations and consulting services. RedChip Companies, Inc. employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein.