China Growth Stocks

[viking86]

CKGT: all in all I don't expect them to have any EPS growth this year in comparison to 2009

that's also my view. Net non-GAAP margin was only 15.2% in the latest Q compared to 20.8% in 1Q09, mostly due to the large increase of low-margin raw and intermediate materials sales that accounted for a whopping 47% of total sales. Gross margin was also 10%+ lower yoy.

I do expect net margins to increase much in the next 3 quarters vs Q1 on the strength of the high-margin old and new product lines. But all in all I expect non-GAAP net margin for this year to come out *much* lower than last year due to the 2 one-time large gains they had last year in Q3 and Q4 as you pointed out plus the higher tax rate. Throw in the increased share count and I can't really see any growth in adj. eps to write home about.

I dont mean to come across as a basher since this is one of my top ten but that's my view for the year.