ORLANDO, Fla., April 9, 2010 (GLOBE NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc., today announced it has issued a research update 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:
"Steady performance from the Company's Taiyuan facility coupled with $8.5 million generated from the newly operating Gujiao facility allowed LPIH to report second quarter revenues 12% higher than Company estimates and 7% above RedChip estimates. Going forward, we expect this strong growth momentum to continue as LPIH utilizes more of Gujiao's capacity."
Sowani continued: "We also anticipate an improvement in operating margin over the next few quarters, mainly as a result of higher capacity utilization at its Gujiao facility, increasing contribution from its high margin agency sales segment, and lower inventory costs due to its recent long-term contract with a supplier.
"Buoyed by the Company's strong performance in the second quarter and its unique position in the Gujiao area, we have raised our earnings estimates for the third quarter and full fiscal year 2010. We reiterate our Strong Buy rating on LPIH shares while raising our 12-month target price from $5.00 to $6.50."
To receive a complimentary copy of the RedChip Visibility Research Update for LPIH, please visit: http://www.redchip.com/about/aboutmain.asp?rid=229">http://www.redchip.com/about/aboutmain.asp?rid=229
To learn more about Longwei Petroleum, visit http://www.redchip.com/visibility/investor.asp?symbol=lpih
About Longwei Petroleum Investment Holding Ltd.
Longwei Petroleum Investment Holding, Ltd. (the "Company") is an energy company that, through its subsidiaries, engages in oil and gas operations in the People's Republic of China ("PRC"). Oil and gas operations consist of transporting, marketing and selling finished petroleum products. The Company's headquarters and primary facilities are located in Taiyuan City, Shanxi Province ("Shanxi"). The Company's second facility is located in Gujiao, Shanxi. The Company purchases diesel, gasoline, fuel oil and kerosene (the "Products") from various petroleum refineries in the PRC. The Company is 1 of 3 licensed intermediaries in Taiyuan City and the sole licensed intermediary in Gujiao that operates its own large scale storage tanks. The Company has the necessary licenses to operate and sell Products not only in Shanxi but throughout the entire PRC. The Company's storage tanks have the largest storage capacity of any non-government operated entity in Shanxi. The Company seeks to earn profits by selling its Products at competitive prices to large-scale gas stations, coal plants, other power-supply customers and small, independent gas stations. The Company also earns revenue by acting as a purchasing agent for other intermediaries in Shanxi and through the sale of diesel and gasoline at gas stations located at each of the Company's facilities. The sales price and the cost basis of the Company's products are largely dependent on the price of crude oil. The price of crude oil is subject to fluctuation due to a variety of factors, all of which are beyond the Company's control. For further information on Longwei Petroleum Investment Holding Ltd., please visit http://www.longweipetroleum.com.
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 Beijing, China; Paris, France; and Seoul, Korea. 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™, Traditional Investor Relations, Digital Investor Relations, Institutional and Retail Conferences, RedChip Small-Cap TV™, Shareholder Intelligence, Social Media and Blogging Services, Webcasts, and RedChip Radio™. 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. All materials are subject to change without notice. Information is obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. Longwei Petroleum Investment Holding Ltd. ("LPIH") is a client of RedChip Companies, Inc. and of RedChip Visibility, a division of RedChip Companies. LPIH paid RedChip Visibility, a division of RedChip Companies, Inc., thirty thousand dollars for twelve months of RedChip Visibility Program services, which included the preparation of the equity research report(s). The equity research report(s) were prepared for informational purposes only and were paid for by the company portrayed in the report. Information contained in the equity research report(s) is obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. 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 small-cap companies communicate their investment characteristics. For the period February 2008 through February 2009, LPIH agreed to pay RedChip Companies, Inc. seventy thousand shares of free-trading stock for the first three months of investor awareness services and, thereafter, thirty five thousand shares of Longwei stock per quarter plus thirty thousand dollars in cash per quarter for each additional three months of service. For the 12-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.