Two threads in the open area ::)
on watchlist:
AOB: Jefferies Starts @ Buy; Sets Tgt @ $20; Analyst Notes
Wednesday, November 21, 2007 08:26ET
Issuer: American Oriental Bioengineering Inc (NYSE: AOB)
Analyst Firm: Jefferies Group Inc.
Ratings Action: INITIATE
Current Rating: Buy
Target Price Action: INITIATE
Target Price: $20.00
Analyst Comments: AOB has proven its ability to assimilate acquisitions, turning inorganic expansion into a sustainable and value accretive strategy. The firm expects AOB's revenues to expand 32% CAGR over the next three years.
Analysis made on May 10th, 2007:
AOB brief technical & fundamental analysis:
Nice buying opportunity when it dipped below $7 :)
I find it impressive how this company's value grew 284 fold over the past five years, from $3 M in 2002 to the current $851 M :o
And this started out as an OTCBB traded stock, AOB used to be AOBO.OB.
from Zacks:
Buy China-based AOB
Monday December 31, 3:04 pm ET
By Grant Zeng, CFA
Reiterating his bullish case for American Oriental Bioengineering, Inc. (NYSE: AOB - News), Zacks senior healthcare analyst Grant Zeng, CFA explains why investors should accumulate the stocks of the specialty pharmaceutical company:
\'American Oriental Bioengineering Inc. is a China-based specialty pharmaceutical company which develops, manufactures and commercializes both plant-based pharmaceutical (PBP) and plant-based nutraceutical (PBN) products. The company recently reported strong 3Q07 financial results and we expect the company to continue to deliver strong 4th quarter financials due to relatively high growth in both Traditional Chinese Medicine (TCM) market and nutraceutical market in China.
\'AOB targets two rather large markets in China: the TCM pharmaceutical market and nutraceutical market. We view AOB as a China play stock and growth story. In the past few years from 2003 and 2006, the company achieved more than impressive top line CAGR of 74.1%. EPS grew from $0.15 in 2003 to $0.46 in 2006, a CAGR of 46.5%. Both top-line and bottom-line continued to grow in second quarter of 2007.
\'We believe AOB will ride the wave of Chinese economic growth and increased healthcare spending in the next few years. We believe the company will continue manage its growth through both organic growth and acquisition. Although growth in the PBN sector may level off in the next few years, we believe the company will achieve high growth in the PBP sector going forward.
\'Specifically, we model top-line growth (CAGR) of 37.4% from 2007 to 2009, EPS growth will reach 31.2% CAGR. We recommended AOB shares in the summer of 2007 when price was around $8 per share. Since then, the price has appreciated 80%. We believe there is still room for further price appreciation at current level. Hence, we reiterate our Buy rating on AOB shares and maintain our price target of $16. We arrive at this price target using 22x industry average P/E, multiplied by our estimated 2009 EPS of $1.04, discounted at 20% for two years.\'
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AOB: CRT Capital Starts @ Buy; Sets Tgt @ $20; Analyst Notes
Wednesday, December 05, 2007 08:35ET
Issuer: American Oriental Bioengineering Inc (NYSE: AOB)
Analyst Firm: CRT Capital Group
Ratings Action: INITIATE
Current Rating: Buy
Target Price Action: INITIATE
Target Price: $20.00
Analyst Comments: The Firm believes the company is positioned to benefit from the Chinese domestic healthcare system with the recent acquisitions of Chanchun Xinan Pharmaceutical and Guangxi Boke Pharmaceutical.
ER Thursday
nice:
American Oriental Bioengineering Reports Fourth Quarter and Full Year 2007 Financial Results
Thursday March 6, 6:14 am ET
- Revenue Increased 39.0% to $57.3 Million in 4Q07 and 45.7% to $160.5 Million in FY07
- 4Q07 Net Income Increased 39.7% to $15.2 Million, or $0.20 per Diluted Share
- FY07 Net Income Increased 48.3% to $43.3 Million, or $0.61 per Diluted Share
- Company Provides Financial Outlook for 1Q08
NEW YORK, March 6 /PRNewswire-FirstCall/ -- American Oriental Bioengineering, Inc. (NYSE: AOB - News), a leading manufacturer and distributor of pharmaceutical and nutraceutical products, today announced financial results for the fourth quarter and fiscal year ended December 31, 2007.
Revenue in the fourth quarter of 2007 increased 39.0% to $57.3 million from $41.3 million in the fourth quarter of 2006, reflecting continued demand for the Company's core prescription and OTC pharmaceutical products, as well as $4.2 million and $3.2 million from the CCXA and Boke acquisitions, respectively. Revenue from pharmaceutical products increased 51.9% to $47.8 million from $31.5 million in the prior year's fourth quarter, driven by increased demand for Shuanghuanglian Injection Powder, Jinji Series of products, Cease Enuresis Soft Gel and Patch. Prescription pharmaceutical products generated $22.2 million in revenue during the fourth quarter, up 48.9% year over year, and OTC pharmaceutical products generated $25.6 million in revenue during the fourth quarter, up 54.6% year over year. Nutraceutical products generated $9.6 million of revenue in the fourth quarter of 2007 compared to $9.8 million in the fourth quarter of 2006. Nutraceutical products generated 17% of revenue in the fourth quarter of 2007 compared to 24% in the same period of last year, as the Company placed more focus on pharmaceutical product sales.
Gross profit in the fourth quarter of 2007 increased 43.5% to $39.0 million from $27.2 million in the fourth quarter of 2006. Gross margin increased 220 basis points to 68.1% from 65.9% in the prior year's period. The increase in gross profit was a result of higher sales, continued operating cost management, and sourcing and operating efficiencies.
Operating income in the fourth quarter increased 38.1% to $18.8 million, an operating margin of 32.8%, from $13.6 million, an operating margin of 33.1%, in the fourth quarter of 2006, reflecting previously anticipated expenses associated with Boke and CCXA acquisitions. Operating expenses in the fourth quarter increased 48.9% to $20.2 million compared to $13.6 million in the prior year period. This increase was primarily due to increased marketing materials, payroll and shipping expenses commensurate with sales growth. Additionally, the Company increased advertising costs as it continued to invest in its brand.
Net income for the fourth quarter of 2007 increased 39.7% to $15.2 million, or $0.20 per diluted share, compared to $10.9 million, or $0.17 per diluted share, in the prior year's period.
Fiscal 2007 Financial Results
Revenue for the fiscal year 2007 increased 45.7% to $160.5 million from $110.2 million in 2006. Prescription pharmaceutical products generated revenue of $59.0 million, up 30.0% from $45.4 million in the year 2006, and OTC pharmaceutical products generated revenue of $68.8 million, up 102.5% from $34.0 million in 2006. The recently acquired CCXA and Boke businesses contributed revenue of $5.4 million and $3.2 million during the fiscal year 2007, respectively. Revenue from nutraceutical products increased 6.0% to $32.7 million from $30.8 million the year before. Net income for 2007 increased 48.3% to $43.3 million, or $0.61 per diluted share, compared to $29.2 million, or $0.46 per diluted share, in the prior year.
Mr. Tony Liu, Chairman and Chief Executive Officer of American Oriental Bioengineering, commented, "We are pleased with our fourth quarter and full year 2007 results, and we are particularly encouraged by the synergies we are starting to realize from our recent acquisitions, Boke and CCXA. These transactions round out our product portfolio nicely, and we believe this strengthens our positioning to achieve our goal of building a leading pharmaceutical business in China. We will continue to seek acquisitions that allow us to drive growth through product diversification, brand strength and distribution reach."
Financial Expectations
For the first quarter of fiscal 2008, which is traditionally the seasonally slowest quarter of the year, the Company anticipates revenue of at least $38.0 million and anticipates diluted earnings per share of approximately $0.12. This is based on a diluted share count of approximately 78 million shares outstanding.
Mr. Liu concluded, "We continue to focus on generating organic growth of at least 30 percent in 2008, while also optimizing our recently acquired businesses. With the expertise we have accumulated from past acquisitions, and a cohesive strategic team, we believe that we are well-positioned to be the leading consolidator in this fragmented industry. We are excited by the opportunities in the marketplace and we will continue to work responsibly and aggressively on behalf of our shareholders."
very nice la-onda. The current Q guidance is slightly below consensus though. I'll continue holding anyway.
American Oriental Bioengineering Guides Below Estimates
Thursday , March 06, 2008 07:24ET
Mar 06, 2008 (EarningsWhispers Guidance Summaries via Comtex) -- American Oriental Bioengineering (NYSE: AOB) said it expects first quarter earnings of approximately $0.12 per share on revenue of at least $38.0 million. The current consensus earnings estimate is $0.14 per share on revenue of $41.7 million for the quarter ending March 31, 2008.
QuoteMarch 6, 2008 5:30 PM EST
Piper Jaffray reiterates a 'Buy' rating on American Oriental Bioengineering (NYSE: AOB). Price target raised from $16 to $17.
Analyst, Gur A. Roshwalb, says, "We remain encouraged that AOB is on track with both its organic growth and acquisition strategies. We believe that AOB's roll-up strategy will be successful in the high growth, highly fragmented TCM China market."
American Oriental Bioengineering, Inc. (AOBO) is a pharmaceutical and traditional Chinese medicine (TCM) company, which develops, manufactures and commercializes both plant-based pharmaceutical (PBP) and plant-based nutraceutical (PBN) products.
American Oriental Bioengineering and China Aoxing Pharmaceutical Enter Into Strategic Alliance
Tuesday April 15, 4:01 pm ET
- Joint Effort to Capitalize on China's Narcotic and Pain-Management Market Opportunity -
NEW YORK, April 15 /PRNewswire-FirstCall/ -- American Oriental Bioengineering, Inc. (NYSE: AOB - News), a leading marketer, distributor and manufacturer of pharmaceutical and healthcare products in China, and China Aoxing Pharmaceutical Company, Inc. (OTC Bulletin Board: CAXG - News; "China Aoxing"), a China-based pharmaceutical company specializing in research, development, manufacturing and distribution of narcotic and pain-management products, today announced that they have formed a strategic alliance to jointly commercialize and develop narcotic and pain-management products in China. As part of this alliance, American Oriental Bioengineering will make an equity investment of $18.0 million in China Aoxing.
The size of the narcotic and pain-management market in China is estimated to be roughly US$300 million today, highly underdeveloped versus Western countries, and growing at an estimated compound annual growth rate of 23 percent.(1) China Aoxing is one of only a few manufacturers designated by the China State Food & Drug Administration (SFDA) to operate in the highly regulated narcotics industry.
Under the terms of the agreement, American Oriental Bioengineering makes an equity investment of $18.0 million in exchange for 30 million shares of newly-issued China Aoxing common stock, priced at US$0.60 per share, and owns approximately 38% of China Aoxing. Additionally, with today's announcement, China Aoxing closed its previously announced acquisition of Shijiazhuang Lerentang Pharmaceutical Company Ltd. ("LRT"), a China-based pharmaceutical company focused on pain-management products.
China Aoxing and American Oriental Bioengineering intend to collaborate on sales of China Aoxing's current product portfolio, particularly Naloxone, as well as commercialization of China Aoxing's narcotic drug development pipeline, which includes Oxycodone and Tilidine. The agreement also includes working together in the areas of marketing, branding, international product licensing and research and development.
Mr. Tony Liu, Chairman and CEO of American Oriental Bioengineering, commented, "We found China Aoxing to be a leading pharmaceutical company specializing in new narcotic and pain-management products in China, with very strong research and development capabilities as well as a broad pipeline of products. These two characteristics are complementary to our long-term objectives. Today's announcement allows us to be increasingly flexible in China's dynamic and ever-changing healthcare marketplace, and we are particularly excited about growth opportunities for narcotic and pain-management products in China. Not only is it a vast and relatively untapped market, but it also has extremely high barriers to entry."
Mr. Zhenjiang Yue, Chairman and CEO of China Aoxing, said, "We are delighted to partner with American Oriental Bioengineering, a leading pharmaceutical company in China's healthcare market. Their interest in our core competencies, namely research and development and GMP-certified manufacturing of narcotics, validates our efforts to capitalize on the nascent pain-management opportunity in China. We also look forward to utilizing their sales and marketing expertise and their distribution network for our extended product offering from our newly acquired LRT, a well-known, pain-management focused company with 127 SFDA-approved products in China."
From yahoo message board. Adding to my position again.
Comments on deal from Oppenheimer 16-Apr-08 02:45 pm
"Not just another Acquisition"
Summary: AOB announced an $18MM equity investment in China Aoxing,
a narcotic drug and pain management–focused Chinese specialty pharma
company. While the equity investment didn't follow AOB's historical acquisition
trend, potentially raising a few eyebrows among investors, the transaction
highlighted management's vision to transform AOB from a pure
TCM/nutraceutical play into a full-blown comprehensive pharmaceutical
bellwether in China. With underpenetrated Chinese narcotic drug offering
ample room for growth, we view the CAXG (NR) transaction as a long-term
positive for AOB. We don't expect AOB's minority stake status in CAXG to
materially impact AOB's '08 financials and believe solid execution of AOB's
in-line products will continue to drive >30% y/y organic revenue growth.
AOB/CAXG
alliance immediately establishes AOB's presence in China's highly
regulated, underpenetrated & growing narcotic drug market.
AOB's laser-sharp execution will guide CAXG to grow its in-line
product sales. CAXG's Shuanghuanglian capsule and LRT's OTC-focused
TCM product portfolio fall right into AOB's marketing expertise.
American Oriental Still Intent on Expansion: Buys Stake in China Aoxing. American Oriental Bioengineering Inc. (NYSE: AOB) took a 38% position in China Aoxing Pharmaceutical Company Inc. (OTCBB: CAXG.OB) as part of a deal under which the two companies will jointly develop and market narcotics and pain relievers in China. American Oriental will pay $18 million for 30 million shares of China Aoxing, a price of 60 cents per share. China Aoxing last traded at $1.22 per share, and it moved up 22 cents to $1.54 following the announcement.
China Aoxing concentrates on highly regulated narcotic pain drugs. Only a few China biopharmas have permission to develop narcotic drugs. In March, China Aoxing agreed to acquire Shijiazhuang Lerentang Pharmaceutical Company, another company with pain drugs in its portfolio, for 8 million shares of stock and $10.8 million in cash, even though China Aoxing listed only $1 million in cash available. The investment by American Oriental allowed China Aoxing to close its purchase of Shijiazhuang Lerentang.
American Oriental had $166 million in cash at the end of 2007, and it has been very intent upon increasing its business by buying companies, though usually it has acquired 100% of privately held biopharmas. In 2007, it made at least four such transactions. The company reported its 2007 profits were $43.3 million on revenues of $160.5 million.
The companies noted that the narcotic and pain market in China is currently worth only $300 million annually, implying patients are vastly underserved.
China Aoxing and American Oriental Bioengineering will collaborate on increasing the sales of China Aoxing's current pain drugs, particularly Naloxone, and they will also work to further development of China Aoxing's narcotic drug pipeline, which includes Oxycodone and Tilidine.
My intuition tells me that AOB is about to release some pent up energy. Wish I could back that intuition up with some tech expertise, but I am still lacking in that area. ;)
You're right; make or break time for AOB.
Thanks for laying out the technical picture Buddjas. I see it more clearly now. :)
BigSully1,
just fyi:
http://www.stockta.com/cgi-bin/analysis.pl?symb=AOB&num1=5&cobrand=windchart&mode=stock
from fous TTT:
AOB has been in a Steady downtrend since it highs its recent highs around $14/share in late 07′ as the market has been unsteady most of 2008. Although it appears that after this negative momentum China looks to be making a rebound as a whole and along with it the undervalued growth stocks such as AOB. After hitting lows near 7 or a 50% drop from its highs in late 07′ AOB made a strong rebound while forming a bullish ascending triangle that broke out Thursday on increased volume suggesting continued bullish momentum from here.
Fundamentally AOB looks cheap among its peers in the biotechnology industry currently trading at a low P/E of just 14x earnings compared to the industry average 22x. Looking forward analysts are expecting continued strong growth for AOB of 1.02eps in 2009. Given these estimates we could give AOB an estimated fair value within its industry of 22.47/share found by multiplying forward earnings of 1.02 x the biotech average trading multiple of 22.03. Given that AOB's fair value within its industry is 151% above its current share price of 8.95 this is a very appealing investment. I took Thursdays breakout as an opportunity to go long AOB.
cheers
Oliver
Thanks La-onda.
Chart update
American Oriental Bioengineering Reports First Quarter 2008 Financial Results
Wednesday, May 07, 2008 06:00ET
NEW YORK, May 7 /PRNewswire-FirstCall/ -- American Oriental Bioengineering, Inc. (NYSE: AOB), a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter ("OTC") products in China, today announced financial results for the first quarter ended March 31, 2008.
Revenue in the first quarter of 2008 increased 50.7% to $38.8 million from $25.7 million in the first quarter of 2007, reflecting continued increased demand for the Company's core OTC and prescription pharmaceutical products. Revenue from pharmaceutical products increased 71.6% to $31.9 million from $18.6 million in the prior year's first quarter, driven by sales of Shuanghuanglian Injection Powder, Cease Enuresis Soft Gel and Jinji Series of products. Revenue from OTC pharmaceutical products increased 138% to $21.2 million from $8.9 million in the prior year's first quarter. Sales of the Jinji series and Jinji Yimucao products were major contributors to this increase as well as sales generated by CCXA and Boke, which were not subsidiaries in the first quarter of 2007. Prescription pharmaceutical products generated $10.6 million in revenue during the first quarter of 2008, a 10% year over year increase. This increase was the result of increased brand recognition, effective pricing and expanded distribution coverage to new rural markets. Nutraceutical product revenue declined approximately 3% to $6.9 million in first quarter of 2008 from $7.2 million in the prior year's period, and decreased as a percentage of total revenue to approximately 18% versus 28% in the comparable period. The decline in Nutraceutical revenue reflects the Company's continued focus on selling and marketing higher growth pharmaceutical products.
Gross profit in the first quarter of 2008 increased 48.5% to $26.3 million from $17.7 million in the first quarter of 2007. Gross margin was approximately 67.8% compared to 68.8% in the prior year's period, reflecting the product mix shift due to the integration of CCXA.
Operating income in the first quarter of 2008 increased 51.4% to $12.0 million from $7.9 million in the first quarter of 2007 while operating margins remained relatively flat at 30.9% as compared to the prior year. For the first quarter of 2008, operating expenses increased 46.2% to $14.3 million compared to $9.8 million in the comparable period of 2007. The increase in operating expenses was primarily due to increases of $2.3 million in sales and marketing expenses, $1.0 million in general and administrative expenses as well as additional depreciation and amortization costs due to the Boke and CCXA acquisitions.
Net income for the first quarter of 2008 increased 46.2% to $9.4 million, or $0.12 per diluted share, compared to $6.4 million, or $0.10 per diluted share, in the prior year's period. Diluted share count in the first quarter of 2008 was 78.2 million compared to 66.6 million in the first quarter of 2007.
Mr. Tony Liu, Chairman and Chief Executive Officer of American Oriental Bioengineering, commented "We completed the first quarter of 2008, which is always our slowest sales quarter of the year, with strong financial performance. We are well-positioned for 2008 as we begin to recognize the benefits of our acquisition strategy and the synergies realized from our Boke and CCXA acquisitions. We believe these transactions, as well as our recently announced strategic alliance with China Aoxing Pharmaceutical, significantly strengthen our position to achieve our goal of building a leading pharmaceutical business in China. We continue to seek acquisitions that allow us to drive growth and flexibility through product diversification, brand strength, distribution reach and vertical integration."
Mr. Liu concluded, "We continue to anticipate organic growth of at least 30 percent in 2008, but, more importantly, we expect to reach total revenue of at least $245 million in the full year 2008. This 50 percent-plus anticipated year over year top line growth reflects continued demand for our leading products, and particularly our success with CCXA and Boke integrations. We also anticipate net income performance of at least $62 million, which reflects anticipated year over year net income growth of more than 43 percent. This full year financial guidance excludes any potential acquisitions. On that note, our acquisition pipeline is particularly strong today and we remain excited about the opportunities in China's healthcare space. With our proven expertise accumulated from past acquisitions, and a cohesive strategy team in place, we believe that we are well-positioned to be the leading consolidator in this fragmented industry. We intend to move quickly and efficiently on the acquisition front and we'll strive to work responsibly and aggressively on behalf of our shareholders."
&
American Oriental Bio a China Play
Thursday May 8, 4:45 pm ET
By Grant Zeng, CFA
American Oriental Bioengineering Inc. (NYSE: AOB - News) is a China-based specialty pharmaceutical company which develops, manufactures and commercializes both plant-based pharmaceutical (PBP) and plant-based nutraceutical (PBN) products. First quarter financials were strong and were in line with our expectations. We expect the company to continue to deliver strong performance for the remainder of the year due to a relatively high growth in traditional Chinese medicine market in China.
AOB targets two rather large markets in China: the TCM pharmaceutical market and nutraceutical market. We view AOB as a China play stock and growth story. In the past few years from 2003 and 2007, the company achieved more than impressive top line CAGR of 66.6%. EPS grew from $0.15 in 2003 to $0.60 in 2007, a CAGR of 42.7%. Both top line and bottom line continued to grow in the first quarter of 2008. We believe AOB will ride the wave of Chinese economic growth and increased healthcare spending in the next few years.
We believe the company will continue manage its growth through both organically and through acquisition. Although growth in the PBN sector may level off in the next few years, we believe the company will achieve high growth in the PBP sector going forward.
Specifically, we model top-line growth (CAGR) of 32.5% from 2008 to 2011 EPS growth will reach 29.7% CAGR. We maintain our Buy rating on AOB shares and maintain our price target of $16. The price target corresponds to a P/E ratio of 17.4 x, 11.9x and 11x of our estimated EPS of $0.92, $1.35, and $1.46 for 2009, 2010, and 2011 respectively.
Q1 Transcript: http://seekingalpha.com/article/78879-american-oriental-bioengineering-inc-q1-2008-earnings-call-transcript?source=yahoo
Chart:
Hi Rams, any update for AOB available?
Chart looks good imho ;)
AOB: Global Hunter Starts @ Buy
Friday , May 23, 2008 10:20ET
Issuer: American Oriental Bioengineering Inc (NYSE: AOB)
Analyst Firm: Global Hunter Securities
Ratings Action: INITIATE
Current Rating: Buy
Seeking Alpha update:
American Oriental Wants to Buyback $75 Million of Stock
by: ChinaBio Today posted on: June 03, 2008 | about stocks: AOB
American Oriental Bioengineering (NYSE: AOB) has authorized a program to repurchase up to $75 million worth of its own shares. These purchases could be open market buys, negotiated transactions with investors or speeded-up stock repurchases. The company will time the transactions with a view toward the price of American Oriental's stock.
At the end of the first quarter of 2008, American Oriental had $159 million in cash and working capital of $196.5 million. AOB has 78 million shares outstanding, giving it a market capitalization of $943 million.
In July 2007, American Oriental floated an 8.5 million share secondary offering at a price of $8.60, which garnered net proceeds of $64 million. Originally, the company filed a prospectus to sell 13 million shares (both included some stock from selling shareholders including CEO Tony Liu). An article in Barron's took a negative view of the offering, discussing a relationship between the company and an unsavory stock promoter and also a few overblown claims for some of the company's products. Although the case was built on innuendo, the attack took about 12% out of the price of AOB's stock, sending it to a level of $8.60, and the size of the offering was cut almost in half. Tony Liu offered only 500,000 shares instead of his originally intended 2 million shares.
Now, the company comes back with a desire to buy as much as $75 million of stock when its shares are trading for $12.10. This price is a 20 cent increase following the repurchase announcement.
American Oriental made its debut as a public company through a reverse merger. It migrated to the American Exchange in June 2005 and then moved to the New York exchange in December 2006.
As we reported last week, American Oriental has put $16 million down toward the acquisition of rival China biopharma companies. The prepayments are refundable if the deals are not completed, and AOB did not give any details on the companies being considered or the type of business they pursue.
AOB's recent acquisitions of CCXA and Boke are working out well. The company also paid $18 million to buy a 37% stake in China Aoxing (CAXG.OB), which makes generic version of western-style narcotic pain drugs. China is very restrictive in giving out licenses for narcotic drug companies. As a result, to participate in China Aoxing's business, AOB departed from its plant-based drug emphasis and its usual practice of acquiring other companies entirely.
AOB Enjoys Solid Growth from TCM
Monday July 21, 5:15 pm ET
By Grant Zeng, CFA
We maintain our Buy rating on American Oriental Bioengineering Inc. (NYSE: AOB - News) as first-quarter financials were strong and were in line with our expectations. We expect the company to continue to deliver strong performance in the second quarter and for the remainder of the year due to relatively high growth in Traditional Chinese Medicine (TCM) market in China.
Total revenue in the first quarter of 2008 was $38.7 million, up 50.5% compared to $25.7 million in the same period of 2007. High revenue growth has translated into earnings and cash flow growth. Going forward, we believe the company will continue to acquire companies that are accretive to its operations.
We are positive about the long-term outlook for TCM and especially plant-based pharmaceutical (PBP) products. TCM is supported by the government and healthcare authorities have recently adopted new policy to try to modernize TCM. Government also increased the number of TCM in the National Basic Medicine Catalog. TCM will enjoy relative invulnerability to regulatory risks due to policy protection. AOB's key products also have competitive advantages.
We believe AOB will ride the wave of Chinese economic growth and increased healthcare spending in the next few years. Although growth in the plant-based nutraceutical (PBN) sector may level off in the next few years, we believe the company will achieve high growth in the PBP sector going forward. Specifically, we model top-line growth (CAGR) of 32.5% from 2008 to 2011. EPS growth will reach 29.7% CAGR. Our price target is $16.
We believe AOB will ride the wave of Chinese economic growth and increased healthcare spending in the next few years. Although growth in the plant-based nutraceutical (PBN) sector may level off in the next few years, we believe the company will achieve high growth in the PBP sector going forward. Specifically, we model top-line growth (CAGR) of 32.5% from 2008 to 2011. EPS growth will reach 29.7% CAGR. Our price target is $16.
quick update:
AOB: Matrix Ups to Strong Buy from Hold
Tuesday , September 02, 2008 13:46ET
Issuer: American Oriental Bioengineering Inc (NYSE: AOB)
Analyst Firm: Matrix
Ratings Action: UPGRADE
Current Rating: Strong Buy (from Hold)
chart:
AOB: Short Interest DN 3.6% to 9.6M at the End of Aug 2008
Thursday , September 11, 2008 06:00ET
According to new short interest data from NYSE, short interest for American Oriental Bioengineering Inc (NYSE: AOB) DECREASED 3.6% to 9,624,310 shares as reported at month-end August, 2008.
Based on AOB's 20-day average daily share volume of 1,039,330, it would require approximately 10 day(s) of buying to cover this short interest.