ORLANDO, Fla., Dec. 10, 2009 (GLOBE NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc., has initiated coverage on China Gengsheng Minerals, Inc. (OTCBB:CHGS) ("CHGS" or "the Company"), a leading manufacturer in China of industrial materials capable of withstanding high temperature, saving energy and boosting productivity.
Rick Grubbs, CFA, RedChip Research Analyst, reported:
"The manufacturing of refractories primarily used in steel production is by far the Company's core business as measured by revenue, however the Company is also now targeting the solar industry and is in a trial production phase for a new fine precision abrasives product used to slice silicon ingots and polish the surface of solar panels. This new business expansion will allow CHGS to capitalize on the surge in demand for highly refined solar panel components in China.
"Supplying precision abrasives to the surging solar industry offers new growth potential for CHGS in 2010 with the potential to double the Company's revenue within three years. With its abrasives production line completed and its first shipment expected to be delivered in the fourth quarter of 2009, we see significant upside potential if the Company can build upon this initial order. We estimate CHGS' current manufacturing capacity of 20,000 mmt per year allows for approximately $88 million in annual revenue at current sales prices. Better still, gross margins of 50% or better are expected for the new abrasives product compared to margins in the 20% and 30% range for the Company's legacy products."
Grubbs continued: "We are initiating coverage of China Ginseng Minerals, Inc., with a Buy rating and a 12-month price target of $4.50. We recommend investors start a position or add to a current position at current levels."
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To learn more about China Gengsheng Minerals, visit http://www.redchip.com/visibility/investor.asp?symbol=CHGS
About China Gengsheng Minerals, Inc.
China Gengsheng Minerals, Inc. ("Gengsheng") develops, manufactures and markets a broad range of high-tech industrial material products, including monolithic refractories, industrial ceramics and fracture proppants. A market leader offering customized solutions, Gengsheng sells its products primarily to the iron and steel industries as heat-resistant components for steel-making furnaces, industrial kilns and other high-temperature vessels to guarantee and improve the productivity of those expensive pieces of equipment while reducing their consumption of energy. Founded in 1986 and based in China's Henan province, Gengsheng currently has over 200 customers in the iron, steel, oil, glass, cement, aluminum and chemical businesses located in China and in 11 other countries. Gengsheng conducts its business through Gengsheng International Corporation, a British Virgin Islands company, and its Chinese subsidiaries, which are Henan Gengsheng Refractories Co., Ltd., Zhengzhou Duesail Fracture Proppant Co., Ltd. and Henan Gengsheng High Temperature Materials Co., Ltd.
About RedChip Companies, Inc.
RedChip Companies is an international, small-cap research and financial public relations firm headquartered in Orlando, Florida; with affiliate offices in Paris and Qingdao, China. 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 Small-Cap TV(TM), Social Media Services, 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
The analysts contributing to this report do not hold any shares of China Gengsheng Minerals, Inc. ("CHGS"). RedChip certifies that no part of the analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the report. The equity research report(s) are not a recommendation of a solicitation to purchase or sell any security, nor do they constitute investment advice. China Gengsheng Minerals is a client of RedChip Companies, Inc. and of RedChip Visibility, a division of RedChip Companies. CHGS agreed to pay RedChip Visibility a fee of fifty thousand shares of common stock under Rule 144 for RedChip Visibility Program services, which includes the preparation of the equity research report(s). The equity research report(s) are prepared for informational purposes only and are paid for by the company portrayed in the report. The equity research report(s) are not a recommendation of a solicitation to purchase or sell any security, nor do they constitute investment advice. RedChip Companies, Inc., is currently engaged by this company to provide investor awareness services. Investor awareness services and programs are designed to help companies communicate their investment characteristics. These services may include investor conferences, digital and print distribution of China Gengsheng Minerals investor-related materials and radio programming. CHGS agreed to pay RedChip Companies, Inc. a monthly fee of four thousand dollars in cash and fifty thousand shares of common stock under Rule 144 for each six-month service period for a total of twelve months of investor awareness services. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein.