ORLANDO, Fla., Aug. 4, 2006 (PRIMEZONE) -- RedChip Independent, a division of RedChip Companies, announced today that they have initiated research on Zhongpin, Inc. (OTCBB:ZHNP).
Lisa Springer, CFA, MBA, RedChip Research Analyst, wrote in the report:
"We are initiating coverage of Zhongpin, Inc. (OTCBB:ZHNP), one of China's leading pork processors, with a 'Buy' rating and a one-year price target of $9.00 -- 80% above the current $5.00 share price. Our price target is based on estimates that value this stock at 1.2 times PEG (P/E divided by EPS growth). PEG is a valuation metric often applied to high-growth companies. In addition, our $9.00 price target assumes EPS growth averaging 25% annually over the next five years. In the last three years, Zhongpin, Inc. has generated 57% annual EPS growth. The 1.2 PEG value we target for the Company is well below the current PEG values of much slower growing U.S. peers."
To receive a complimentary copy of the RedChip Independent initiation research for ZHNP, please visit: http://www.redchip.com/independent/subscriber.asp?page=requestZHNP
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RedChip Independent Research Disclosure
The analysts contributing to this ZHNP RedChip report do not hold any shares of ZHNP. Additionally, the analysts contributing to this report certify that the views expressed herein accurately reflect the analysts' personal views as to the subject securities and issuers. RedChip certifies that no part of the analysts' compensation was, is, or will be, directly or indirectly, related to the specific recommendation or views expressed by the analyst in the ZHNP RedChip report. Additional information on the securities mentioned in this report is available upon request. This ZHNP RedChip report is based on data obtained from sources we believe to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. As such, the ZHNP RedChip report should not be construed as advice designed to meet the particular investment needs of any investor. Any opinions expressed herein are subject to change. ZHNP is not a client of RedChip Companies, Inc., or any of its affiliates.