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Jinpan International (JST: Nasdaq) was announced as a Strong-Buy on 14 September 2009 at the $27.50 per share level -- your JST shares are now trading substantially higher at the current $36 range. Jinpan International is a leading designer, manufacturer, and distributor of cast resin transformers for high voltage distribution equipment. The company’s transformers allow high voltage transmissions of electricity to be distributed to various locations at lower, more usable voltage levels.
China-based Jinpan International is our top “Asian-Rim” growth stock. George Soros has called China -- with its rapid GDP growth and the potentially lucrative privatization of state-owned-enterprises -- “the opportunity of a lifetime.” And in fact, just last month it was confirmed that the country’s massive government spending and bank lending has helped China’s growth rate accelerate to an 8.9 percent pace in the third quarter – far outstripping expansions elsewhere around the globe. And in a recent speech at Shanghai’s Fudan University, Soros further solidified his stance on China stating “China has been recovering and its pace of recovery will be faster than the rest of the world.”
I agree – and that is just one reason why I believe JST will continue to be a strong portfolio performer over the coming business quarters. Further, Forbes has now named Jinpan to its list of “Asia’s Best 200 Under A Billion” for the third consecutive year. Jinpan was one of only 78 companies from the China/Hong Kong subset to make this prestigious list. JST is also taking advantage of significant growth opportunities in the U.S. and other international markets and recently announced the opening of its brand new 20,000 sq-ft office and warehouse facility in Carlstadt, New Jersey, to serve its growing base of U.S. customers.
The company’s 3rd quarter financial results were just released and were highlighted by:
-- 3Q09 Gross Margin Increases 12.3% to 43.7% Compared to 3Q08--
-- 3Q09 Operating Income Increases 34.0% to $9.8 Million Compared to 3Q08 --
--3Q09 Net Income increases 81.6% to $9.4 Million Compared to 3Q08 -
-- Raises FY09 Net Income and Diluted EPS Estimates --
I see Jinpan International as operating from a position of strength as it capitalizes on China’s impressive growth rate and also on emerging opportunities in other world markets, which are being driven by continued global economic recovery. We expect this positive trend to continue for Jinpan International and its shareholders. Maintain your JST positions; I am setting an initial “Profit-Protect” point at $42 per share. << HOME PAGE | ARCHIVES >> |
