RedChip Issues Research Alert for Mizati Luxury Alloy Wheels, Inc. (MZTI.PK)
In a recent press release, Mizati announced that it had a very strong first quarter with revenues increasing 32% from the previous year. Operating income also increased as it rose from $329,603 to $354,183.
Mizati plans to focus growth efforts primarily in Mexico next year, which represents tremendous growth opportunities. The company plans to partner with a distributor that works with 7,000 different retail stores, and will soon be meeting with the distributor to discuss purchasing plans.
This year the company plans to establish a more efficient operations tracking system, strengthen alliances with other companies regarding manufacturing and distribution, and improve its Asian operations.
RedChip concluded the research report by stating, “We believe MZTI’s initiatives to expand its distribution network and international operations will continue to drive strong revenue growth and margins improvement in FY07 and FY08. We maintain a “Buy” rating and a 12 month price target of $1.73 based on a multiple of 5x projected 2008 revenues of $13.5 million. Beyond our 12 month target price, we believe there is strong potential for continued, long term price appreciation.
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