Keep an Eye on this Chinese Winner
Monday, February 25th, 2008
By Mitchell Clark, B.Comm. for Profit Confidential
One of my favorite Chinese stocks just reported amazing financial growth. I know; expectations for a lot of these companies are very high, but I can’t help but be astounded at the numbers and the speed with which some Chinese businesses are growing.
In my view, any speculative equity portfolio just has to have some exposure to the world’s fastest growing large economy.
Yingli Green Energy Holding Company Limited (NYSE/YGE) just reported that its total fourth quarter 2007 revenues grew 168% to almost two hundred million dollars.
Yingli Green Energy is a major producer of photovoltaic (PV) solar energy products in China. Operating through its principal subsidiary, Baoding Tianwei Yingli New Energy Resources Co., Ltd., the company designs and manufactures PV modules. It also installs PV systems that are connected to electricity transmission grids as well as those that operate on a stand-alone basis.
Currently, the company is one of the largest manufacturers of PV products in China as measured by annual production capacity.
The company’s total PV module shipments in the latest quarter were 50.9 MW, representing a 10.8% increase from the proceeding quarter and a 216% increase from the comparable quarter.
Gross margin rose in the latest quarter, while net income grew to nineteen million dollars, representing growth of 1,167% over net income generated in the comparable quarter.
The company now projects that its full-year 2008 PV module shipments will be between 255 MW and 265 MW, representing production growth of between 79% and 86%. Revenues in 2008 are expected to be between nine hundred and sixty-nine million dollars and $1.02 billion, representing growth of between 74% and 83%.
Long-time readers of this column will know about my affinity for the alternative energy industry and Chinese stocks in general. I don’t expect a stock like Yingli Green Energy will take off in price tomorrow, but I do expect this company to be a lot bigger and a lot more profitable five years from now.
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Tags: china, chinese stocks, Stock Market Advice
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Mitchell is a Senior Editor at Lombardi Financial specializing in small-cap stocks. He’s the editor of a variety of popular Lombardi Financial newsletters, such as Penny Stock Reporter, Micro-Cap Stocks, and Monster Profits. Mitchell, who has been with Lombardi Financial for thirteen years, won the Jack Madden Prize in economic history and is a long-time student of equity markets. Prior to joining Lombardi, Mitchell was as a stock broker for a large investment bank. While Mitchell is not working he enjoys fly fishing, motorcycling and tending to his hobby farm.



