ORLANDO, Fla., April 13, 2010 (GLOBE NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc., has initiated coverage on China Linen Textile Industry, Ltd. (OTCBB:CTXIF), a China-based manufacturer and distributor of linen products.
Rahul Sowani, RedChip Research Analyst, reported:
"CTXIF has announced an aggressive multi-pronged growth strategy. The Company is adding capacity for spinning yarn as well as fabric dyeing with an objective to double capacity over the next five years. At the same time, the Company is also expanding its domestic marketing efforts and plans to integrate forward and backward as it seeks to have a presence across the industrial value chain via a series of planned mergers and acquisitions in the next few years.
"The Company also continues to develop unique technologies (including a patent) to spin middle and low-end yarn in a cost efficient manner. CTXIF claims that its cost of production is 15% lower than that of its domestic competitors."
Sowani continued: "We are initiating coverage of CTXIF with a Buy rating and a 12-month price target of $4.00. With strong growth expected in the domestic Chinese market and the superiority of the Company's product backed by core R&D, we expect to see good top and bottom line growth in FY10."
To receive a complimentary copy of the RedChip Visibility Initial Research Report for CTXIF, please visit: http://www.redchip.com/about/aboutmain.asp?rid=231">http://www.redchip.com/about/aboutmain.asp?rid=231
To learn more about China Linen Textile Industry, Ltd. visit http://www.redchip.com/visibility/investor.asp?symbol=CTXIF
About China Linen Textile Industry, Ltd.
China Linen Textile Industry, Ltd. (http://www.china-linen.net/en/main.asp ), is principally engaged in the production and sale of linen yarn and various types of linen fabric. The Company is also involved in consultation and R&D related to linen technology and linen products. The Company carries on all of its business activities through its subsidiary, Heilongjiang Lanxi Sunrise Linen Textile Industry Co., Ltd. ("Sunrise Linen"), established in June 2002 and located in Lanxi County, the "Homeland of Flax in China," near Harbin City in China. Sunrise Linen has one yarn-spinning factory and two fabric weaving factories in its 28,000 square meters of building area with a staff of 1,500 and 310 sets of world-class, advanced producing machinery. Annual production capacity totals approximately 1,600 tons with 50 different types of yarn and 8 million meters of fabric with 110 types.
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 Qingdao and 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™, Social Media Services, 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. China Linen Textile Industry, Ltd. ("CTXIF") is a client of RedChip Companies, Inc. and of RedChip Visibility, a division of RedChip Companies. China Linen Textile Industry, Ltd. agreed to pay RedChip Visibility a fee of one hundred thousand shares of Rule 144 common stock in cash 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 small-cap companies communicate their investment characteristics. These services may include investor conferences, digital and print distribution of CTXIF investor-related materials and radio programming. CTXIF agreed to pay the aforementioned stock compensation to include 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.