QualityStocks would like to highlight China Modern Agricultural Information, Inc. (OTCBB: CMCI). Through its subsidiaries, the company operates as a livestock company that primarily engages in the breeding of cows and calves, principally in China. It is also involved in the production and sale of milk, the sale of organic fertilizers, and the promotion of agricultural information. The company is based in Harbin, China.
In the company’s news yesterday,
China Modern Agricultural Information announced that, for the three quarters ended March 31, 2012, the company’s net income increased by $8.4 million, or 149%, to $14 million, as compared with $5.7 million for the three quarters ended March 31, 2011. The company’s net profit margin increased from 33% to 72%, and the earnings per share increased from $0.14 to $0.31, which was an increase of $0.17 or 120%.
In November of 2011, China Modern successfully acquired 100% ownership of Shangzhi Yulong Cattle Industry Co. Ltd., generating a bargain purchase gain of $5.72 million that has been consolidated in the quarterly financial statements ended Dec. 31, 2011.
The company’s projected earnings for the fiscal year ended June 30, 2012 are anticipated to be approximately $27.6 million, which represents an increase of $2.6 million, or 10%, as compared with $25 million for the same time frame in the previous year. Revenues from raw milk sales are forecasted to be $18.3 million, and sales commission from farmers is projected to be $9.3 million. The company’s forecasted gross profit is $18 million, which is an increase of $5 million, or 38%. The gross profit margin is anticipated to increase from 52% to around 65%. China Modern’s anticipated net income is $16.4 million, which represents an increase of around $7.6 million, or 86%, as compared to the same period in 2011. The company’s projected net profit margin will have increased to 59%, up from 35%, and the earnings per share is forecasted to rise from $0.23 to about $0.35, which is an increase of 52% year-over-year.
China Modern Agricultural is a high-tech livestock company that specializes in breeding cows and calves, producing and selling milk, and selling organic fertilizer directly to suppliers. The company additionally provides livestock breeders with specialized livestock technical consultation, cow breeding technical support, and agricultural information support. The company’s farmland is located in the Heilongjiang Province, which has a humid continental climate that is ideal for the growth of grass, which, in turn, is essential for grazing and feeding cattle and aids in the company’s cow and calf breeding, raw milk production, and organic fertilizer production.
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