5. Zhongpin (HOGS) is a meat and food processing company specializing in pork and pork products, vegetables and fruits in China. Pork and pork products contributed 98% toward total revenue in 2010 and 2009.
For full-year 2010, total revenue increased to $947 million, surging 30% from 2009 on increased sales in its meat and meat products segment, attributable to Zhongpin gaining traction in other geographies, expansion of the retail store network and improved sales to food service distributors in China.
Net income increased to $58.3 million in 2010 from $45.6 million in 2009. Net profit margin dropped to 6.2% in 2010 from 6.3% in 2009 as Zhongpin could not pass on to customers higher hog prices.Regarding future performance, Warren Wang, Zhongpin's CFO, said in a statement: "For 2011, we expect that Zhongpin's sales revenues should be within a range of $1.18 billion to $1.23 billion, with gross profit margin within the range of 11.7% to 12.4%, and net income margin within the range of 5.7% to 6.3%." The company recently closed a $70.5 million common stock offering on March 22. It intends to use the net proceeds for the construction of processing and cold chain facilities. The stock trades at 8.3 times its estimated 2011 earnings.