For the specialty chemical company's fourth quarter, revenue was $384.6 million, an increase of 128.1%, from $168.6 million in the fourth quarter of 2012, while net income increased to $57.5 million from $17.3 million over the same period.
For the full year, total revenues were $1.05 billion and net income was $133.8 million, compared to $599.8 million and $85.9 million, respectively in 2012.
Jie Han, Chairman and Chief Executive Officer, said, "The accelerated growth reflected China XD's strong execution of our market share gaining strategy, which translated into our solid revenue and earnings growth and positive business development."
TheStreet Ratings team rates CHINA XD PLASTICS CO LTD as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHINA XD PLASTICS CO LTD (CXDC) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CXDC's very impressive revenue growth greatly exceeded the industry average of 12.4%. Since the same quarter one year prior, revenues leaped by 79.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.58, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.27, which illustrates the ability to avoid short-term cash problems.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Auto Components industry and the overall market, CHINA XD PLASTICS CO LTD's return on equity exceeds that of both the industry average and the S&P 500.
- The gross profit margin for CHINA XD PLASTICS CO LTD is rather low; currently it is at 24.22%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 14.00% is above that of the industry average.
- You can view the full analysis from the report here: CXDC Ratings Report