CHGS monster 2h09, then uplisting...
They basically have three business segments: refractories, proppants, and precision abrasives.
Their refractories segments is running two shifts at 100%.
On the 2q09 conference call, management guided full year proppant revenue to 11.7MM USD. 1h09 proppant revenue was a little less than 4MM. So 2h09 proppant revenue is expected to be 7.8MM. Almost double.
On the 2q09 conference call, management guided precision abrasives full year revenue to 10.2MM USD. CHGS started trial runs at their abrasives plant earlier this year and will launch commercially some time in fall 2h09. So 1h09 revenue from this segment was zilch. This will be their highest margin segment.
2h09 profit contribution from refractories will be about 2x 2q09 contribution. At an 11.7MM USD run rate for proppants, capacity utilization will be fairly high...meaning profit margin will likely return to a more historic level. Based on revenue guidance, profit after tax and minority interest will be in the 7.9MM range.
That's about 33 cents per share. For half a year. For a stock that's trading at $1.45. Just another of many China Stox values.
Plus, at the Roth conference in February of this year, they said they were working hard for a Nasdaq listing. Two things are keeping them off the nasdaq:
1.) Number of shareholders
2.) Share price
Expect a reverse split toward the end of 2009 and uplisting after that.
AI
