Zhongpin Inc.
Zhongpin Inc. (HOGS), the Chinese-based meat and food processing company that handles pork as well as fruits and vegetables, announced fiscal year 2009 guidance on Feb 9 that was higher than analysts' estimates.
Full-year earnings are expected in the range of $1.50 to $1.63 per share. Analysts currently expect $1.49 per share.
However, the company, which has a global business that includes customers in Russia and the European Union, acknowledges the rough global economy.
"During the fourth quarter of 2008, demand for pork products declined as the worldwide economic slowdown began to impact the Chinese economy," said Mr. Xianfu Zhu, CEO.
"Our growth strategy for 2009 is to achieve robust revenue growth by increasing our market share and improving our customer service. We plan to accomplish this by establishing additional regional sales and distribution centers, developing new products, and optimizing sales channels," he added.
Value Fundamentals
Zhongpin is now a Zacks #2 Rank (buy) stock. The stock trades with a forward P/E of only 4.3. It has a PEG of 0.17.
The company is expected to report fourth-quarter and full-year 2008 earnings on Mar 17.
Read the Nov 20, 2008 analysis.
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