ZYCI Play for Housing Boom in China
Relatively undiscovered play Ziyang Ceramics (ZYCI) recently released strong guidance for the rest of 2012.
Ziyang Ceramics Corporation
Symbol: ZYCI
Price: $2.50
Snapshot
– “The number of middle class in China has risen significantly with a
few million Chinese not considered middle class. This means that more
Chinese are becoming homeowners, which means they will want the
amenities that many people enjoy in their houses in the United States.
This is a strong trend for porcelain wall and floor tiles maker Ziyang
Ceramics (ZYCI). In late June, ZYCI announced ten new OEM distribution
agreements for distributors to sell interior porcelain tiles and brand
them how they’d like. As per the press release, the new distribution
agreements collectively call for minimum sales orders of approximately
$1.3 million per month.”
– “The number of middle class in China has risen significantly with a
few million Chinese not considered middle class. This means that more
Chinese are becoming homeowners, which means they will want the
amenities that many people enjoy in their houses in the United States.
This is a strong trend for porcelain wall and floor tiles maker Ziyang
Ceramics (ZYCI). In late June, ZYCI announced ten new OEM distribution
agreements for distributors to sell interior porcelain tiles and brand
them how they’d like. As per the press release, the new distribution
agreements collectively call for minimum sales orders of approximately
$1.3 million per month.”
Home décor is becoming a big deal in China and ZYCI is capitalizing on the demand.
ZYCI
recently provided financial guidance for 2012. The company sees total
revenue ranging between $13.5 million and $15.0 million and net income
exceeding $3.5 million with approximately 10 million shares of common
stock issued and outstanding according to a PR released on July 24th.
recently provided financial guidance for 2012. The company sees total
revenue ranging between $13.5 million and $15.0 million and net income
exceeding $3.5 million with approximately 10 million shares of common
stock issued and outstanding according to a PR released on July 24th.
This
guidance represents a substantial improvement in overall financial
performance, both sequentially as well as to the comparable quarter in
2011.
guidance represents a substantial improvement in overall financial
performance, both sequentially as well as to the comparable quarter in
2011.
Management
sees revenue for the full year of 2012 exceeding $55 million with net
income exceeding $14 million, or EPS of $1.40 based on the current 10
million shares outstanding.
sees revenue for the full year of 2012 exceeding $55 million with net
income exceeding $14 million, or EPS of $1.40 based on the current 10
million shares outstanding.
For 2011, ZYCI recorded revenue of $43.1 million with net income of $10.8 million.
This comes as ZYCI is trading at a market cap of only around $25 million currently.
Investors
have been discovering ZYCI during June and July. ZYCI shares traded up
to the $4.00 level at times during June while its shares are currently
at $2.50.
have been discovering ZYCI during June and July. ZYCI shares traded up
to the $4.00 level at times during June while its shares are currently
at $2.50.
We
could see ZYCI climb again soon. Watch it closely and take time to
research it further as its quite an exciting opportunity in a growing
market.
could see ZYCI climb again soon. Watch it closely and take time to
research it further as its quite an exciting opportunity in a growing
market.
——
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Russ Urban
Staff
FeaturedProfiles.com
Russ Urban
Staff
FeaturedProfiles.com
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