Sino Agro Food Inc (fka SIAF)

[treit2002]

Why is net income of $.39 FD that hard to understand?

It does NOT include the one time capital gain from the dairy business. It is also ABSOLUTELY REMARKABLE GROWTH, considering they've jettisoned the dairy business, a strategically well considered move.

Here are the 2010 results:

Revenues
$40,551,066 Gross Profit $22,453,425
Gross Profit Margin 55% Income from Operations $18,901,864
Please note the difference between gross profit and net profit was only $3.5M, primarily because SIAF is exempt from income taxes. This number shouldn't change too much in 2011.

They sold the major contributing division to 2010 revenues and profits to strategically transition the company, and still forecast:

46% jump in revenues, and
37% jump in gross profits

Think about what the growth rates for the three remaining businesses are.