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China-Biotics Inc (NASDAQ: CHBT)

Chutinush Taksinapinunt ,Corporate Account Executive, Heffernan Capital Management


China-Biotics Inc (NASDAQ: CHBT) Our Price target in 2011 is $20

China-Biotics, Inc. ("China-Biotics" or "the Company"), a leading manufacturer of biotechnology products and supplements, engages in the research, development, marketing and distribution of probiotics dietary supplements in China. Through its wholly owned subsidiaries, Shanghai Shining Biotechnology Co., Ltd. and Growing Bioengineering (Shanghai) Co. Ltd., the Company develops and produces a proprietary product portfolio. Currently, its retail products are sold over the counter, mainly through large distributors, to pharmacies and supermarkets in Shanghai and Jiangsu and Zhejiang provinces.

The Company also sells bulk products to institutional customers such as dairy and animal feed producers as well as pharmaceutical companies. In February 2010, China-Biotics began its commercial production in China's largest probiotics production facility to meet growing demand in China. China-Biotics, Inc. is one of just a few Chinese food companies that have received four major international certifications — including HACCP, a U.S. FDA designation required for all food imports into the U.S. And CHBT’s probiotics have a survival rate of 70% at room temperature two years after manufacture — twice the requirement for probiotic products sold in Europe, it says. Because of its superior fermentation technology, the company’s products also have a much higher active ingredient concentration than most domestic competitors. In fact, many of its domestic competitors use outdated technology to manufacture probiotics, which tend to be inferior and have a shorter shelf life.


Snapshot INTRA-DAY INTERACTIVE CHART

SUMMARY Change

0.030 (0.272%)

Bid

11.020

Ask

11.500

Open

11.000

High

11.080

Low

10.350

Volume

N.A.

52-Week Range

19.74 - 8.75

1-Yr Return

-26.253%

Earnings EARNINGS

FUNDAMENTALS

Earnings Past 12 Months

0.960

Shares (Millions)

22.150

Quarter Est. EPS (12/10)

0.45

Market Cap (Millions)

244.538

Quarter Est. EPS (03/11)

0.50

Float (Millions)

10.892

Year Est. EPS (03/11)

1.68

Return on Equity

14.124

Price/Earnings (Trailing)

11.500

Short Interest

4,365,296.000

Relative P/E

0.765

Last Dividend Reported

N.A.

Earnings Growth Rate

31.300

Dividend Yield (ttm)

N.A.

Estimated P/E

6.600

Relative Dividend Yield

N.A.

Our Price target in 2011 is $20


Source : http://www.bloomberg.com/apps/quote?ticker=CHBT:US REVENUE Periods

2009

2010

2011

June

11.371

15.4125

24.9357

September

11.495

17.1487

23.5886

December

15.8101

23.2943

March

15.5211

25.509

Note: Units in Millions of U.S. Dollars


EARNINGS PER SHARE Periods

2009

2010

2011

June

0.18952

0.33769

0.39477

September

0.13395

-0.20393

0.33175

December

0.22235

0.32463

March

0.38578

0.12951

Note: Units in U.S. Dollars

VALUATION RATIOS Company

Industry

Sector

S&P 500

9.35

28.07

29.22

17.84

P/E High - Last 5 Yrs.

NA

4.03

1.17

18.98

P/E Low - Last 5 Yrs.

NA

1.38

0.41

4.83

Beta

1.28

0.79

0.66

1.27

Price to Sales (TTM)

2.51

14.93

5.82

2.09

Price to Book (MRQ)

1.32

2.67

2.36

2.84

Price to Tangible Book (MRQ)

1.33

3.98

5.84

19.10

Price to Cash Flow (TTM)

5.37

16.97

16.99

10.46

19.78

64.90

16.88

47.74

--

--

--

--

P/E Ratio (TTM)

Price to Free Cash Flow (TTM)

% Owned Institutions


GROWTH RATES Company

Industry

Sector

S&P 500

Sales (MRQ) vs Qtr. 1 Yr. Ago

37.55

1,664.34

53.79

9.36

Sales (TTM) vs TTM 1 Yr. Ago

52.33

33.77

8.63

8.94

--

26.44

13.43

9.86

EPS (MRQ) vs Qtr. 1 Yr. Ago

262.68

10.17

186.56

5.76

EPS (TTM) vs TTM 1 Yr. Ago

59.14

--

--

--

EPS - 5 Yr. Growth Rate

--

21.77

13.86

6.98

Capital Spending - 5 Yr. Growth Rate

--

6.38

12.26

4.90

Company

Industry

Sector

S&P 500

Quick Ratio (MRQ)

2.77

2.33

2.23

0.67

Current Ratio (MRQ)

2.78

2.92

2.82

0.99

LT Debt to Equity (MRQ)

0.00

19.79

23.66

118.67

12.96

22.44

28.11

173.06

4.26

6.61

1.27

19.01

Sales - 5 Yr. Growth Rate

FINANCIAL STRENGTH

Total Debt to Equity (MRQ) Interest Coverage (TTM)


PROFITABILITY RATIOS Company

Industry

Sector

S&P 500

68.45

23.62

54.66

32.87

--

34.52

54.75

29.18

46.37

--

--

--

--

-89.59

19.09

18.55

43.84

-129.33

19.51

--

--

-113.25

13.50

16.25

53.16

-129.88

19.50

15.01

--

-112.33

14.46

15.86

44.24

-128.95

13.94

11.14

--

-113.77

9.54

11.64

16.77

16.72

23.85

50.15

--

13.10

27.39

25.24

Company

Industry

Sector

S&P 500

190,839

7,042,981

27,261,163

676,313

84,432

-728,924

3,122,603

84,785

Receivable Turnover (TTM)

4.45

4.40

3.65

10.51

Inventory Turnover (TTM)

32.41

6.86

3.37

6.76

0.50

0.29

0.57

0.55

Gross Margin (TTM) Gross Margin - 5 Yr. Avg.

EBITD Margin (TTM) EBITD - 5 Yr. Avg

Operating Margin (TTM) Operating Margin - 5 Yr. Avg.

Pre-Tax Margin (TTM) Pre-Tax Margin - 5 Yr. Avg.

Net Profit Margin (TTM) Net Profit Margin - 5 Yr. Avg.

Effective Tax Rate (TTM) Effecitve Tax Rate - 5 Yr. Avg. EFFICIENCY

Revenue/Employee (TTM)

Net Income/Employee (TTM)

Asset Turnover (TTM)


MANAGEMENT EFFECTIVENESS Company

Industry

Sector

S&P 500

22.06

0.53

8.48

6.01

Return on Assets - 5 Yr. Avg.

--

4.94

9.04

5.77

Return on Investment (TTM)

29.97

0.65

10.62

7.71

--

5.80

11.43

7.46

34.03

-0.11

12.92

18.04

--

7.69

14.97

9.25

Return on Assets (TTM)

Return on Investment - 5 Yr. Avg.

Return on Equity (TTM)

Return on Equity - 5 Yr. Avg.

Chutinush Taksinapinunt holds a Bachelor of Business Administration degree Majoring in Finance and Banking. Chutinush Taksinapinunt is an experienced Market Maker and Portfolio Manager having worked with some of Thailand’s largest Securities Companies and Financial Insitutions. Corporate Account Executive Heffernan Capital Management

Price Estimate by Shayne Heffernan PhD


Shayne Heffernan of Ebeling Heffernan holds a PhD in Economics serves as CEO of Heffernan Holdings Inc and Co Founder of Ebeling Heffernan www.ebeling-heffernan.com

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China-Biotics Inc (NASDAQ: CHBT)