Back in May, I wrote in this column about a company called American Oriental Bioengineering, Inc. (NYSE/AOB). This small-cap company is another pure play Chinese growth stock, which is in the business of developing and selling plant-based pharmaceutical products and plant-based nutraceutical products distributed throughout Asia. I really like healthcare and pharmacare-type companies at this time because, for the most part, people don't stop spending on these products even if the economy slows.

It's difficult to get a real sense for the plant-based pharmaceutical industry in China, but if there's one country in the world that believes in these products, it is that country.

American Oriental Bioengineering is registered in Nevada, has a corporate office in New York, and maintains its production and research facilities in China. First founded in 1970, it was listed for trading on the Over-The-Counter Bulletin Board. The stock graduated to the American Stock Exchange in July 2005 and then graduated to the New York Stock Exchange.

American Oriental Bioengineering's line of plant-based pharmaceuticals has more than 80 products, while its plant-based nutraceuticals line has more than 20 products featuring what the company calls "double soybean peptide tablets."

In its most recently completed third quarter of 2008, the company reported that its revenues grew 62% to almost seventy-one million dollars, up from forty-three and a half million dollars in the comparable quarter due to increased demand for over-the-counter and prescription pharmaceutical products.

According to American Oriental Bioengineering, its net income for the third quarter of 2008 grew 38% to sixteen and a half million dollars, or $0.21 per diluted share, compared to almost twelve million dollars, or $0.16 per diluted share, in the third quarter of 2007.

The company increased its full-year 2008 revenue expectations to at least two hundred and fifty million dollars, and expects substantial earnings of approximately sixty-two million dollars, excluding any effects from recent acquisitions.

Right now, there's virtually no interest in small-cap growth stocks and this is no big surprise. Enthusiasm for more speculative equity investments is always cyclical. I think a company like American Oriental Bioengineering is worth following because it's got a growing business with products that are in high demand, and the business model is very profitable.