China Precision Steel Incorporated is a niche and high value-added precision steel processing company principally engaged in producing and selling high precision cold-rolled steel products. They have just been issued a “Strong Buy Alert” from sharpeyed.com as well as a target price of $10, nearly a 230% increase from the current trading value. This value has been determined by the good news that has recently been released by the company, and future news which is expected in the upcoming weeks. CPSL has also been featured by investing company, Motley Fool.
Yesterday the company announced that it was awarded the “High-Tech Enterprise” certification by the Science and Technology Commission of Shanghai Municipality in December, 2007. This award is given to high-tech enterprises with technologically-intensive competitive advantages and leading products that utilize advanced corporate management systems. It is an honor to be granted this award, which was doled out to less than 300 companies in 2007, and is only valid for one year.
The company has been posting some incredible numbers on their income statements as of late. Sales for fiscal year ’07 were $53.9 million, compared to $13.5 million for fiscal 2006. This is an increase of almost 400% year over year, which has been attributed to higher demand and a 28% increase in gross profit thanks to manufacturing efficiencies. All of these factors translated into a net income of $8.3 million for year ending June 30, 2007.
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