NEW YORK ( TheStreet) - China, with a population of 1.3 billion people, will see food demand increase as rising income levels transform dietary habits and prompt the shift from farming agriculture commodities to manufacturing fertilizers, and from grain production to beef and hogs. China, which accounts for almost 20% of the world's population, has only 7% of arable land. Existing and potential farmlands are shrinking to meet the needs of a booming economy, rapid industrialization, and a growing urban sprawl. In such a scenario, we list three Chinese companies, which are scheduled to release their second quarter results next week. These companies are tracking strong internal growth. Yongye International ( YONG researches, develops, produces and sells fulvic acid-based liquids and power nutrient compounds for the agriculture industry. On July 19, the company announced a two-fold increase in its second quarter revenues along with preliminary results and sales guidance. The company said that its revenues increased 93.5% to $89 million from $46 million in the year-ago period, well ahead of the analysts' estimates of $70.25 million. Yongye has raised its forecast for the full-year based on the strong demand from rural Chinese farmers for its Shengmingsu range of agricultural nutrient products. The company expects robust sales growth in traditional provinces as well from the newer Yongye brand stores in central and southern China. For the full year, Yongye now expects $180 million to $185 million in revenue, up from the prior estimate of $160 million to $165 million. Meanwhile, analysts forecast revenue of $165.1 million for the full year 2010. The stock closed at $8.30 in yesterday's trading session. On July 20, Roth Capital Partners assigned a buy rating to the stock with a target price of $15, representing an upside of 80.7%. Zhongpin ( HOGS is engaged in the production of fresh and frozen pork, processed meat products and vegetables and distributes them through supermarket chains within and outside of China. On July 26, the company announced plans to build a new hog slaughtering, processing and logistics facility in northeastern China for about $61.5 million. The first phase of construction will commence in the third quarter. The facility, which is scheduled for completion in 2012, will process about 1.2 million hogs per year, producing about 125,000 metric tons of pork products. China is considered the pork capital of the world, consuming almost 50% of the world's pork production.
Zhongpin is scheduled to report second quarter results on Aug, 10. Analysts estimate sales at $217 million on earnings per share of 37 cents. In the year-ago quarter, the company reported revenue of $161.9 million on earnings per share of 36 cents. In yesterday's trading session, the stock closed at $14.99. On July 27, 2010 Roth Capital Partners assigned a buy rating to the stock with a target price of $18, indicating an upside of 20.1%. AgFeed Industries ( FEED produces premix, blended feed and animal nutrients, primarily for hogs. On July 22, 2010 the company announced an agreement to acquire the operations of M2P2 LLC, a U.S.-based hog production company for $16 million. The valuation is subject to adjustment based upon the book value of M2P2's assets, with 80% paid in cash and the remainder 20% in AgFeed common stock. Additionally, the company is due to release its second quarter earnings in a week on Aug. 10. Analysts estimate sales of $55 million on earnings of four cents per share. In the year-ago quarter, the company reported revenue of $38.5 million on earnings of three cents per share. In yesterday's trading session, the stock closed at $2.73. On July 21 Rodman & Renshaw assigned "outperform" rating to the stock with a target price of $5, indicating an upside of 83.2%.