We would like to highlight Jinpan International Ltd. (NASDAQ: JST). The company designs, manufactures and sells cast resin transformers for voltage distribution equipment in China. Its cast resin transformers allow high voltage transmissions of electricity to be distributed to various locations in lower, more usable voltages.
In the company’s recent news,
Jinpan International Ltd. reported second quarter 2008 financial results during regular trading hours. Revenues rose to$40.6 million, an increase of 26.7% year-over-year from $32.1 million. Net income rose to $6.0 million, or 74 cents per share, an increase of 47.4% from $4.1 million, or 51 cents per share, in the same period of 2007. No analysts currently cover the stock.
“We made excellent progress in our business in the second quarter,” said Zhiyuan Li, Chief Executive Officer of Jinpan. “We achieved sales increases for our core cast resin transformer products; we grew sales in both our domestic and international businesses; and demand for our wind power applications continued to gain healthy momentum. In spite of higher raw material costs, we were able to increase our gross margin 80 basis points largely due to increased sales of higher margin, customized cast resin transformer and wind power products.”
The company reiterated its financial guidance for fiscal 2008. Revenues are expected to be approximately $155 million, which represents a 30% increase over 2007 revenues of $119.6 million. Jinpan anticipates full-year net income of approximately $21.4 million, or $2.64 per share, a 30% increase compared to $16.4 million, or $2.06 per share for 2007.
Shares of JST closed at $32.50 on Friday and have traded in a range of $20.00 - $44.98 during the past year. Shares were up as much as 10% intraday, hitting a high of $35.86. With 8.1 million shares outstanding, JST has a market cap of $280 million and a trailing twelve-month P/E of 14.5.
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Forward-Looking Statement:
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.
