EQPI news - a true sleeper - Zhongchai Machinery Expanding Production Capacity to Meet Market Demand
HANGZHOU, CHINA--(Marketwire - 12/02/10) - Zhongchai Machinery, Inc. (OTC.BB:EQPI - News) announced that its wholly owned Chinese subsidiary, Zhejiang Zhongchai Machinery Co., Ltd. ("Zhejiang Zhongchai"), is expanding its gear production capacity to meet increasing market demand. The expansion will be completed by the end of 2010 and will bring the gear production capacity to annual production of 2.5 million units from current annual production capacity of 1.2 million units. The budget for the expansion will be from Zhongchai's internal working capital.
Zhongchai produces high-grade gears for the use in diesel engines and in transmission gearboxes. Zhongchai has entered into an area of business that enjoyed the fast growth of infrastructure build up in China. With its technology advantages and superior production quality, Zhongchai is facing a high demand from the market for its products. Zhongchai has to quickly increase its production capacity to meet the market demand.
"We are very happy to see this production capacity expansion as part of our business plan to meet the market demand. We shall continue to expand our production lines as our market coverage expanding," said by Mr. He Mengxin, the president of Zhejiang Zhongchai.
Zhongchai Machinery, Inc.
Zhongchai Machinery, Inc. is a developer, producer, and distributor of gears, transmission gearboxes, and transaxles for industrial and agricultural equipment, such as forklift trucks and diesel engines. It conducts its business in China through its wholly owned subsidiary in China.
It sucks when 7 straight quarters of over 30% growth qtr-qtr lands you a target price of a trailing PE of 4-5. Even worse when you are in a sector expecting strong growth.
WTF is the only thing that comes to mind. Frustrating.
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