Currently running above full capacity - anual revenue run rate for current capacity is $ 1.2 to 1.3 bln ... they will double capacity by 2016 - in 2017 they will have a revenue run rate of $ 2.5 bln .... this implies earnings power of around $ 300 mln ... ten times earnings means market cap of 3bln ... assuming full dilution of preferred D stock, this means a stock price of 50 dollar by 2017 ... a multiple of 15 times means 75
I know, there are some assumptions related to pricing integrated in these assumptions but I'm not selling below 40:-)
Overall business performance remained very strong as evidenced by 30.5% increase in shipping volume to 337,189 metric tons, up from 223,982 metric tons in the 2012 and 84.5% increase from 62,692 metric tons in the fourth quarter of 2012 to 115,650 metric tons in the same period of 2013. For the specialty chemical companies fourth quarter, revenue was $384.6 million, an increase of 128.1%, from $168.6 million in the fourth quarter of 2012, while net income increased to $57.5 million from $17.3 million over the same period.
For the full year, total revenues were $1.05 billion and net income was $133.8 million, compared to $599.8 million and $85.9 million, respectively in 2012.
Jie Han, Chairman and Chief Executive Officer, said, "The accelerated growth reflected China XD's strong execution of our market share gaining strategy, which translated into our solid revenue and earnings growth and positive business developments.
Thanks to the execution of our well thought out marketing strategy. We continue penetrating East and more China markets. Revenue contribution from those two markets during the fourth quarter of 2013 were up 208.5% and 137.4% respectively compared to the revenue a year ago. In addition we have started generating revenues from Southwest China with 3.7% revenue contribution in 2013 and remain confident with the gross penetrations in the recent for years to come, high performance fibers for 3D printing, YOY increase of 75%, gross profit returned -up 145%, gross margin 23%,
CXDC's very impressive revenue growth greatly exceeded the industry average of 12.4%. Since the same quarter one year prior, revenues leaped by 79.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
The current debt-to-equity ratio, 0.58, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.27, which illustrates the ability to avoid short-term cash problems.
The Company shifted product mix from traditional Modified Polypropylene (PP) to higher-end products such as Modified Polyamide (PA), Alloy Plastics, Environment Friendly Plastics, and Engineering Plastics, primarily due to (i) the increasing demand of advanced modified plastics in luxury automobile models in China, (ii) the stronger demand promoted by Chinese government for clean energy vehicles and
(iii) stronger sales of higher-end cars made by automotive manufacturers from China and Germany, US and Japan joint ventures, which tend to use more and higher-end modified plastics in quantity per vehicle in China. we develop modified plastics using our proprietary technology, manufacture and sell our products primarily for use in the fabrication of automobile parts and components. We have 283 certifications from manufacturers in the automobile industry as of December 31, 2013. We are the only company certified as a National Enterprise Technology Center in modified plastics industry in Heilongjiang province. Our Research and Development (the "R&D") team consists of 237 professionals and 12 consultants, including two consultants who are members of Chinese Academy of Engineering, and one consultant who is the former chief scientist of Specialty Plastics Engineering Institute of Jilin University. As a result of the integration of our academic and technological expertise, we have a portfolio of 109 patents, one of which we have obtained the patent rights and the remaining 108 of which we have applications pending in China as of December 31, 2013.
Our products include seven categories: polypropylene (PP), acrylonitrile butadiene styrene (ABS), modified engineering plastics, polyamides (PA or nylon), environment-friendly plastics, specialty engineering plastics and polyether ether ketone (PEEK). The Company's products are primarily used in the production of exterior and interior trim and functional components of more than 24 automobile brands and 80 automobile models manufactured in China, including Audi, Mercedes Benz, Buick, Chevrolet, VW Passat, Golf and Jetta, BMW, Mazda, and Toyota. Our research center is dedicated to the research and development of modified plastics, and benefits from its cooperation with well-known scientists from prestigious universities in China. We operate three manufacturing bases in Harbin, Heilongjiang in the PRC, with the construction of Sichuan plant underway. As of December 31, 2013, we had approximately 390,000 metric tons of production capacity across 83 automatic production lines utilizing German twin-screw extruding systems, automatic weighing systems and Taiwan conveyer systems, including the three additional workshops with 30 production lines completed the trial-run in December of 2012 and further expanded our annual capacity potential by approximately 135,000 metric tons and support our future growth in 2013. In December 2013, we broke ground on the construction of our fourth production base in Nanchong City, Sichuan Province, with additional 300,000 metric tons of annual production capacity, expecting to bring total installed production capacity to 690,000 metric tons with additional 70 new production lines at the completion of the construction of our fourth production base.