China Tracker - Details for China Gerui Advanced Materials (CHOP)


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 China Gerui Advanced Materials
 Business Outlook

China Gerui Advanced Materials clarified the outlook provided in yesterday's earnings press release: For fiscal year 2011, China Gerui expects revenue of between $330 million and $345 million and gross profit of between $115 million and $120 million. On a GAAP basis, the Company expects fiscal year 2011 net income of between $65 million and $70 million and diluted earnings per share of between $1.10 and $1.15. On a non-GAAP basis, the Company expects fiscal year 2011 adjusted net income of between $70 million and $75 million and diluted earnings per share of between $1.20 and $1.25. Adjusted net income and adjusted diluted earnings per share exclude one-time warrant exercise expenses incurred in the first quarter of 2011.

(Source: PR Newswire, 2011-05-11)

For fiscal year 2011, China Gerui expects revenue of between $330 million and $345 million, gross profit of between $115 million and $120 million, adjusted net income of between $65 million and $70 million, adjusted diluted earnings per share of between $1.10 and $1.15. Adjusted net income and adjusted diluted earnings per share exclude one-time warrant exercise expenses incurred in the first quarter of 2011.

(Source: PR Newswire, 2011-05-10)

For fiscal year 2011, consistent with the Company's previous guidance, China Gerui expects revenue of between $330 million and $345 million, gross profit of between $115 million and $120 million, net income of between $70 million and $75 million, diluted earnings per share between $1.20 and $1.25, and capital expenditures to complete its previously announced Phase II of expansion plan of between $12 million and $15 million.

(Source: PR Newswire, 2011-04-07)

For fiscal year 2010, China Gerui expects revenues of $252 million and net income of $48 million. For fiscal year 2011, China Gerui expects revenues of between $330 million and $345 million, gross profit of between $115 million and $120 million, net income of between $70 million and $75 million, and capital expenditures to complete its previously announced expansion plan of between $12 million and $15 million.

"Our current production facility continues to operate at near-full capacity and we very much look forward to having our additional capacity come online. By December 2011, we plan to double our existing production capacity to 500,000 tons per annum, and increase our chromium plating capability to 250,000 tons per annum, covering 50% of our total annual steel production capacity. Phase I of the expansion plan involves the construction of two new cold-rolled, wide-strip steel production lines with 150,000 tons of total annual capacity and a chromium plating line capable of processing 200,000 tons of cold-rolled steel per annum. We expect that the two new cold-rolled production lines will be completed by January 2011, to be followed by test production runs and a full launch of production operations by March 2011. We expect a relatively quick ramp-up after the full launch of production operations begin with an initial capacity utilization of the two new cold-rolled wide-strip steel production lines of approximately 50% rising to approximately 75% by September of 2011. Phase II of the expansion plan involves the construction of a third cold-rolled wide strip steel production line with 100,000 tons of capacity by the end of the third quarter of 2011."

"We expect demand in China for the type of high precision steel that we produce to continue to grow at a healthy pace due to the continuing improvement of the standard of living in the country and the growth of the Chinese middle class, who are the ultimate end-users of our products. In addition the Chinese government is continuing to encourage domestic consumption throughout the economy. With our new capacity coming online, we will be able to offer our customers new, higher value-added products, such as chromium and zinc coated products and wide strip products. Our customers are asking us to produce these products so we are confident the demand will be there once our new production capacity comes online. These products will increase our sales and our profitability as they are higher margin than the products we make now."

(Source: PR Newswire, 2010-12-08)

As previously announced, by December 2011, the Company plans to double its existing production capacity to 500,000 tons per annum, and increase its chromium plating capability to 250,000 tons per annum, covering 50% of its total annual steel production capacity. Phase I of the expansion plan involves the construction of two new cold-rolled, wide-strip steel production lines with 150,000 tons of total annual capacity and a chromium plating line capable of processing 200,000 tons of cold-rolled steel per annum. The Company expects total capital expenditures for Phase I to be $42 million, of which approximately 90% has been spent to date. Due to delays related to severe flooding in North China over the last summer season, the Company now expects that the two new cold-rolled production lines will be completed by January 2011, to be followed by test production runs and a full launch of production operations by March 2011. The Company expects a relatively quick ramp-up after the full launch of production operations begin with an initial capacity utilization of the two new cold-rolled wide-strip steel production lines of approximately 50% rising to approximately 75% by September of 2011. Phase II of the expansion plan involves the construction of a third cold-rolled wide strip steel production line with 100,000 tons of capacity by the end of the third quarter of 2011. The Company expects the capital expenditures for Phase II to total approximately $12 million.

"Unlike the crude steel industry, whose demand is largely driven by the capital investment cycle, the use of our products is much more related to consumer spending and overall GDP growth in China. This is because the largest component of our revenues comes from food, beverage, and industrial packaging manufacturers, with the balance coming from manufacturers of construction and interior decoration materials, electrical and home appliances and telecommunications equipment. We expect demand in China for the type of high precision steel that we produce to continue to grow at a healthy pace due to the continuing improvement of the standard of living in the country and the growth of the Chinese middle class, who are the ultimate end-users of our products. In addition the Chinese government is continuing to encourage domestic consumption throughout the economy."

"The high precision steel market in China is outperforming the general steel industry. As the largest player in our market, we are well positioned to capitalize on this attractive growth opportunity. We are not a commodity steel producer. Our products are high-end, value-added finished steel products and we are a supplier of choice when our existing customers develop new products. We provide our customers with high-precision, ultra-thin, high-strength, cold-rolled steel products that are characterized by stringent performance and specification requirements that mandate a high degree of manufacturing and engineering expertise. Our products are not standardized commodity products. Instead, they are tailored to our customers' requirements and subsequently incorporated into products manufactured for various end applications. Customers turn to China Gerui because we make high quality products at very competitive prices as compared to imports. We see the demand in the market and are confident in our ability to ramp up production once our expansion is complete."

(Source: PR Newswire, 2010-11-15)

Our expansion project remains on track and we look forward to bringing this new capacity online later this year. Our business outlook remains strong as the sale of our products are driven by domestic purchasing power in China, which continues to rise, and the import replacement trend in our industry. With our new facility we will be able to produce both narrow and wide-strip cold-rolled steel for a wider range of high-end applications than we do currently. We see the demand in the market and are confident in our ability to ramp up production once our expansion is complete.

(Source: PR Newswire, 2010-08-31)

As previously announced, by December 2011, the Company plans to double its existing production capacity to 500,000 tons per annum, and increase its chromium plating capability to 250,000 tons per annum, covering 50% of its total annual steel production capacity.

"We believe that our new facilities will enable us to sell high quality and higher margin wide strip products. Our business continues to benefit from the fact that the demand for the end uses of our finished steel products are driven by the domestic Chinese economy in areas that continue to exhibit robust growth such as consumer electronics, food and beverage packaging, and telecommunications cable and equipment. In addition, although there may be a surplus capacity of raw steel in China, there is still a domestic shortage of the type of high precision cold-rolled steel products that we produce. With our new capacity, we will be able to continue to provide our customers with the ability to replace imports with our domestically made products, which we believe are of the same quality but at lower cost. In addition, we believe that we will be able to meet the increasing demand from our customers for both narrow and wide-strip cold-rolled steel for a wider range of end applications."

(Source: PR Newswire, 2010-07-28)

China Gerui currently has six narrow strip cold-rolled steel production lines with an annual production capacity of approximately 250,000 tons plus 50,000 tons per annum of chromium coating capacity. The Company's production lines are operating at near full capacity and are expected to continue to operate at near full capacity for the second and third quarters of 2010. The Company is on schedule with its plan to construct a new production facility, including two 75,000 ton chromium-coated production lines to be completed by the second half of 2010 and one 100,000 ton zinc-coated production line to be completed by the end of 2011. This expansion is expected to increase the Company's annual production capacity to 500,000 tons by 2011.

(Source: PR Newswire, 2010-05-13)

China Gerui's existing production facility is running at very close to full capacity and for fiscal year 2010 the Company expects to focus on expanding its production lines in order to meet the demand for its products in the Chinese domestic market. In addition to the high-precision cold-rolled steel strip products, the Company will focus on developing other high-margin steel products in the cold-rolled steel category, such as wide strips and sheets. The Company is on schedule with its plan to construct a new production facility, including two 75,000 ton chromium-coated production lines to be completed by the second half of 2010 and one 100,000 ton zinc-coated production line to be completed by the end of 2011. This expansion is expected to increase the Company's annual production capacity to 500,000 tons by 2011. For the first quarter of 2010, the Company expects to achieve revenues of between $54 million and $56 million and net income of between $10.5 million and $11 million.

(Source: PR Newswire, 2010-03-10)
CHOP
Steel
SCORE
-2
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Current Price:  n/a
F10k Day (2009-11-02): -100.00%$7.00
2009 Close: -100.00%$5.60
2010 Close: -100.00%$5.88
2011 Close: -100.00%$3.35
High (2012-04-05): -100.00%$3.66
Low (2012-10-19): -100.00%$1.50
Exchange:
Market Capitalization: n/a
Total Shares: 48.39 mill
Float: n/a
Avg Volume: 316.20 k
Short Interest: 495.20 k
Short Ratio: 1.81%1.6 d
Last Quarter: 2010-12-31
Revenue (MRQ): 66.14 mill
Net Income (MRQ): 11.34 mill
Op. Cash Flow (MRQ): 17.50 mill
all financial data provided without warranty