HQ Sustainable Maritime Industries Inc.

HQ Sustainable Maritime Industries, Inc (HQS - Snapshot Report) shares have been explosive following its third-quarter earnings announcement.

Company Description

HQ Sustainable Maritime is an integrated aquaculture and aquatic product processing company, with operations based in the environmentally pristine island province of Hainan, in China's South Sea. HQ's activities include using renewable ocean resources, practicing cooperative sustainable aquaculture, and conducting fish processing and sales.

HQ is China's leading producer of quality tilapia fish exports to the U.S. The company is principally engaged in harvesting, processing, sales and marketing of farm-bred and ocean harvested products.

Sales Up 42%

On Nov 10 HQ reported third quarter results that included sales of $22.5 million, a 42% year-over-year increase. Profits were also up, now $4.9 million, almost double the third quarter figure for 2007.

Earnings per share were 43 cents, well above the consensus estimate of 24 cents. The company reported earnings per share of 38 cents in the same quarter of 2007.

Explosive Growth

While the HQ's earnings are expected to contract this year, the consensus estimate for full-year 2009 is $1.27, just under 200% year-over-year growth.

Rolling Out a New Brand

This summer the company introduced Omojo, an Omega 3 based health and beauty line. The product line includes anti-wrinkle cream and pills, vitamins, and others some of which are made using the byproducts of fish from the company's food processing plants.

Production Quality Certification

On Dec 2 HQ received certification from the British Retail Consortium and the Ethical Trade Initiative. The certifications verify that the company produces its tilapia and shrimp through ethical practices and are of the highest quality.

The Chart

Shares of HQS spike after the November earnings announcement and just broke through a recent level of resistance. Take a look at the chart below.