China Biotics Inc.

China Biotics Inc. (CHBT) easily beat expectations in its August first-quarter results and is projecting 50% revenue growth in fiscal 2010.

Company Description

China Biotics, Inc. develops and produces probiotics products in China. Its products contain live microbial food supplements, which affect the host by improving its intestinal microbial balance. The company was founded in 1999 and has a market cap of $243 million.

China continunes to be a hot destination for investors looking to score outsized gains. That has held true with China-biotics, whose share price has posted huge gains over the last few months, helped by the company's impressive first-quarter results, reported on August 21.

Revenue was up 36% from last year to $15.4 million. Earnings also came in strong at 31 cents per share, 14 cents ahead of the Zacks Consensus Estimate.

The company noted that its results were helped by strong demand for its products from the Shining-brand retail stores and more pricing power.

Guidance and Estimates

China Biotics was bullish on its future, saying it expects revenue growth of at least 50% in fiscal 2010. With only one analyst covering this company, there is no next-year estimate, but the current-year estimate is up 10 cents in the last 60 days to $1.30 per share.

Valuation

Based on the current-year estimate, this stock trades with a P/E multiple of 13X, a discount to the overall market.

The Chart

Shares of CHBT have been rallying since March, recently topping off above $17. Take a look below.

Email	Print	Share	RSS	Rate Pos	Rate Neg	Comment