ORLANDO, Fla., April 5, 2007 (PRIME NEWSWIRE) -- RedChip Independent, a division of RedChip Companies, announced today that they have issued a research update on Zhongpin, Inc. (OTCBB:ZHNP).
Lisa Springer, CFA, MBA, RedChip Research Analyst, wrote in the report:
"Zhongpin results exceeded the 2006 earnings guidance provided by management during a June quarter conference call. Management originally projected 2006 revenues at $117.7 million and net income at $10.1 million. Actual reported 2006 revenues were $143.8 million and net income, excluding SEC penalties, was $14.7 million. Zhongpin's registration statement was declared effective during the 2006 fourth quarter, so we anticipate no further SEC-related penalties. In addition, management indicated in the year-end 2006 earnings release its belief that previously issued 2007 guidance is conservative. This guidance forecasts 2007 revenues at $185 million and net income at $15 million. At a current price of $7.25, Zhongpin shares trade at only about 10 times 2006 earnings and at less than 10 times projected 2007 earnings. We believe these shares are significantly undervalued at current levels and reiterate our BUY recommendation and $10 price target."
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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.