LOS ANGELES, Aug. 3, 2010 (GLOBE NEWSWIRE) -- EquityNet Research, an independent West Coast equity research firm, announced today that, based on preliminary second quarter guidance issued by American Jianye Greentech Holdings, Ltd. (OTCBB:AJGH) on July 29, the Company, a Heilongjiang-based developer and distributor of alcohol-based automobile fuel products in the People's Republic of China, including methanol, ethanol and blended fuels, will beat both revenue and earnings estimates for the quarter.
American Jianye announced that it will book approximately $15 million in revenue for the quarter, compared to EquityNet's estimate of approximately $14 million, and approximately $2 million in net income, compared to the $1.7 million projected by the research firm.
Overshadowed by the BP oil spill in the Gulf of Mexico, the worst oil spill in U.S history and one that President Obama is demanding a $20 billion fund from BP, China is also having its own issues with two recent oil spills – as well as other disasters such as tainted rivers - bringing to light that country's environmental record.
That record, already on people's minds as China's economic growth has topped 10% for the past three decades and demand is unprecedented, is at the forefront with PetroChina's recent Dalian oil spill. Meager in comparison to the BP disaster, it is yet another signal of the severe challenges China must confront in the face of its staggering economic ascent.
Beijing's allocation of more than $220 billion of its $586 billion stimulus package to green projects seems proof that China as a whole is concerned with its industrial machine's environmental impact. But one would have to question recent facts. Responding to questions from Bloomberg News, the Chinese environmental protection ministry said, "Fast economic development is leading to increasing conflicts with the capacity of the environment to absorb" demands. Certainly that can be no surprise. According to Bloomberg, there were 102 accidents in the first half of 2010, compared with 171 for the whole of last year, according to figures derived from the ministry's data. The ministry stated that environmental accidents are up 98% this year compared to last, according to Bloomberg.
This could be a sign for some smaller Chinese stocks as well. While PetroChina might be large enough to be unaffected, smaller petroleum companies such as Longwei Petroleum Investment Holding Ltd. and China Integrated Energy, Inc. might not be so lucky.
As the Beijing Olympics proved, however, China is very concerned with its global image. In addition, the country is investing more heavily than any other in alternative energies, production methods and other cleantech. As the environment has taken the global center-stage, especially in the energy sector, companies that could prove to be undiscovered Chinese gems, such as biodiesel distributor American Jianye Greentech Holdings, Ltd. (OTCBB:AJGH) and China Clean Energy, a biodiesel and chemicals manufacturer, could garner more attention.
The International Energy Agency (IEA) recently announced that last year China surpassed the U.S. as the world's largest energy consumer. So one thing is for sure, as the Earth's largest emitter of greenhouse gases as well, something has to break somewhere in the coming years.
About EquityNet Research
EquityNet Research, an independent West Coast equity and market research firm, was formed to provide the investing public with professional, independent, objective research on under-followed public companies. It does this by preparing detailed reports and associated commentaries that highlight the key aspects of selected industries or individual companies. EquityNet strictly maintains independence and objectivity according to the Standards of Professional Conduct of the CFA Institute (CFAI), and though is compensated for performing due diligence and creating reports, thus keeping its research free to the public, does not have extraneous relationships with its followed-companies nor has any present or future pecuniary benefit other than that disclosed for each company on its Web site. EquityNet was compensated $7,000 by Hanover Financial Services for the due diligence, preparation, and any updates for one year, of the American Jianye report. EquityNet is not a registered investment advisor and nothing contained in any materials should be construed as a recommendation to buy or sell any securities. Price targets should be construed as fair-market-value (FMV) as of the date of any report, using industry-standard methodologies. Many factors can cause stock prices to deviate from FMV, including supply and demand issues, and general equity market, economic and industry conditions.