CMCI is Starting to Trade. Huge Upside on Fundamentals
China Modern Agricultural Information
No. A09, Wuzhou Sun Town Limin Avenue, Limin Development District
Harbin, Heilongjiang, China
Phone: (86) 0451-84800733
Fax: (86) 0451-85964093-11
Financial Highlights for the Fiscal Year Ended June 30, 2012
- Revenue increased 19% year-over-year to 29.8 million dollars from 25 million dollars ;
- Gross profit increased 46% to 19.1 million dollars; gross margin improved to 64% from 52%;
- Net income increased 96.6% to 17.4 million dollars versus 8.9 million dollars in 2011;
- Earnings per share of 0.37 dollars based on 47 million shares outstanding;
- Cash totaled 16.9 million dollars or 0.32 dollars per share;
- Working capital increased year-over-year 184.6% to 23.4 million dollars;
Operational Highlights for the Fiscal Year Ended June 30, 2012
- Acquired Yulong Cattle Co., in November 2011 which increased our number of the cows by 3,800 and improved our production capacity by approximately 90 tons per day.
- Received several raw milk orders including 4,000 tons from Qiqihar Heshan Dairy, 4,000 tons raw milk order from Heilongjiang Nong kendelong Dairy, 5,000 tons raw milk order from Long Xing Dairy Co., and 6,000 tons raw milk order from Suihua Dongxing Dairy.
PROFILE:
China Modern Agricultural Information, Inc. ("China Modern" or the "Company"), through its subsidiaries, operates as a livestock company that engages in the production and sale of raw milk principally in China. The Company is also involved in the breeding of cows and calves and the sale of organic fertilizers. China Modern is based in Harbin, China.
As a leading raw milk producer, China Modern is benefiting from the rapid growth of China's dairy industry. According to Euromonitor International, China's dairy market is expected to grow from 28 billion dollars in 2011 to 46.5 billion dollars by 2016. China's highly fragmented dairy industry consists primarily of small farms with low output, creating consolidation opportunities for larger players such as China Modern. The Company has achieved 29.8 million dollars in revenues and 17.4 million dollars in net income, with a gross margin of 64%, for the fiscal year ended June 30, 2012.
Shares of China Modern trade at a low single-digit P/E, providing strong upside potential for investors.
VALUE PROPOSITION:
- Rapidly growing market for dairy products in China
- Customers include two of China's largest dairy processors
- Highly efficient operating model across the value chain
- The Company has achieved 96.6% year-over-year net income growth with 64% gross margin for fiscal 2012
- Chinese government provides financial and tax incentives to support the dairy industry's expansion
- High quality milk with competitive pricing
- New breeding model to decrease the operating cost and lower business risk
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OTCQB: CMCI
Market Value:
18,036,000 dollars as of Oct 09, 2012
Shares Outstanding:
53,100,000 as of May 10, 2012
Authorized Shares:
75,000,000 as of Apr 30, 2010
Shareholders of Record:
785 as of Sep 28, 2012
Transfer Agent:
Columbia Stock Transfer Company
VIDEO INTERVIEW:
10/19/12
RECENT NEWS:
China Modern Releases Net Income Guidance of 5 Million Dollars or 0.10 EPS for the First Quarter of the Fiscal Year 2013
A New Audio Interview With David Linn, Assistant to Mr. Youliang Wang, Chief Executive Officer of China Modern Agricultural Information, Is Now at SmallCapVoice.com
Autumn Epidemic Prevention Successfully Implemented on All China Modern Dairy Cows
KEY EXECUTIVES:
Wang Youliang
CEO
Liu Yanyan
CFO
Qin Libei
COO
Liu Zhengxin
CHO
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