ORLANDO, Fla., April 15, 2010 (GLOBE NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc., has issued a research update on China GengSheng Minerals, Inc. (NYSE Amex:CHGS), 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:
"CHGS reported solid results for its fourth quarter and full year of 2009 even without sales of its new product line, fine precision abrasives. The Company's core refractory business outpaced our estimates in the fourth quarter while fracture proppants and ceramic sales exhibited moderate growth.
"We remain optimistic that sales of abrasives will begin to meaningfully contribute to the top line in 2010. This will help offset potentially slower growth in the refractories segment and improve margins going forward."
Grubbs continued: "We believe CHGS has the balance sheet, and the right business mix in 2010. We are maintaining our Buy recommendation and target price of $4.50."
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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 refractories, industrial ceramics and fracture proppants. As a market leader offering customized solutions, GengSheng sells its products primarily to the iron-and-steel industry 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 other countries. GengSheng conducts 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., Henan GengSheng Micronized Powder Materials Co., Ltd, Guizhou SouthEast Prefecture Co., Ltd., GengSheng New Materials Co., Ltd, and Henan GengSheng High Temperature Materials Co., Ltd. For more information about the Company, please visit http://www.GengSheng.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
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.