2. LJ International (JADE), a vertically integrated company, designs, brands, markets, distributes and retails a range of fine jewelry. In the Asia-Pacific region, the company conducts its jewelry retail business under the brand ENZO with major focus on China. In the North American region, its activities center on wholesale marketing and its marketing relationship with International Jewelry Connection.
For full year 2010, surpassing the company's guidance, revenue was up 27% to $140.5 million from the previous year with the retail segment contributing 55%. Meanwhile, net income for the year stood at $13 million or 49 cents per fully diluted share, up from $3.7 million or 15 cents per share in 2009. At the end of 2010, the company opened a net 38 stores taking the total count to 133. Moreover, the company closed the year with a strong balance sheet aided by almost $38 million fresh capital from two new bank credit lines and a private placement share issue during the fourth quarter 2010.
Looking ahead, the company plans to own 200 ENZO stores by the end of 2011. For first quarter of 2011, the company estimates revenue and net income at $40 million and $3 million, an increase of 48% and 60% from the year-ago quarter, respectively. Retail and wholesale revenue are seen soaring 52% and 44% year-over-year to $25 and $15 million, respectively.The two analysts covering the stock recommend a buy. Analysts polled by Bloomberg expect the stock to gain an average 79% to $7.0 over the next 12 months.
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