Flower Business
Form 10 revealed the acreage planted in 2007, and plant maturities. From this and company estimates of $25,000 net profit per Chinese acre, and yields to three year maturity, we can estimate income capacity of:
$14.6M in 2010, and
$24.3M in 2011
These are huge numbers.
The company has indicated that it will defer sales to smooth earnings. Even so, this looks like upwards of $.40 per diluted share in 2011, and definitely $.40+ in 2012 without further planting.
So, the flower business alone will carry the bulk of current income estimates until the fishery business provides the next blast off!!
"187 acres were planted with HU Plants from late 2007 to
current day consisting of 47 acres of 3 years old and 88 acres of 2 years old plants with the balance in new and year 1 old plants.
In 2008, the Year 2007 planting showed a yield of average of 7,500 flowers per mu in a year, resulting in a total yield of over 2.15 million pieces of flowers harvested and sold as fresh flowers. In 2009, Year 2007 planting yielded
over 14 million pieces of fresh flowers, whereas the Year 2008 planting showed a total yield of 2.5 million pieces of fresh flowers. We anticipate Year 2010 to be a good year, and HST expects a total harvest of no less than 50 million pieces of green flowers."
AI
