China Growth Stocks

[veggix]

Things I like about SOKF:

-72.2% EPS growth YOY

-Gross margin of 67.8%

-Net Margin of 43%

-Inside ownership of 45%

-Business model - I love the way they sell to the same customer various services and products : cross selling at its best :)

-Expansion Strategy: Tier 2 cities and suburban areas of Tier 1 cities (less competion)

-Costumer composition

-New business line with non surgical medical spa

-Around 80% member retention

-China is the 3rd largest market in fitness after the US and France

-The fitness/spa industry has grown 24% in 2008
For the Chinese to be a member of a fitness club is much more than a health or wellness reason, but also a social status issue. Check this: http://www.cctv.com.cn/lm/133/42/63105.html and this: http://ihrsa-industry-news.blogspot.com/2009/11/lets-get-physical-chinas-fitness.html

Veggix