4 China Earnings to Watch Next Week

NEW YORK (TheStreet) -- China Automotive Systems (CAAS), LJ International (JADE), China TransInfo Technology (CTFO) and China Sunergy Co Ltd (CSUN) are four China stocks scheduled to report quarterly earnings next week.

Of these stocks, LJ International and China Automotive Systems have an upside potential of more than 100%. Based on analysts' 12-month price targets and superior buy and hold ratings, these stocks are likely to outperform their peers.

These four stocks are stacked based on their earnings release date, starting with the earliest.

4. China Automotive Systems is a holding company of Great Genesis Holdings Limited. Through Genesis, the company manufactures power steering systems and other component parts for automobiles. The company operates through eight Sino-foreign joint ventures in China and a wholly owned subsidiary in the U.S. The company will announce its fourth-quarter and full-year 2010 results on March 21.

Net income for the fourth quarter is forecast at $8.4 million on sales of $93.3 million, compared to net income of $6.8 million on $83.8 million sales recorded during fourth-quarter 2009, according to analysts polled by Bloomberg. Earnings per share are seen at $1.13 for 2010, up from 77 cents per share reported during 2009. For 2011, earnings per share are likely to increase by 8%, to $1.22, analysts foresee.

Of the seven analysts covering the stock, 86% recommend a buy, while the remaining suggest a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg expect the stock to gain an average 107% to $18.25 in value from current levels.

3. LJ International designs, brands, markets, distribute and retails a range of fine jewelry. Apart from specializing in the colored jewelry segment, it also offers high-end pieces set in yellow gold, white gold or sterling silver and adorned with colored stones, diamonds, pearls and precious stones. The company will announce its fourth-quarter and full-year 2010 results on March 21.

Net income for the fourth quarter is forecast at $3.6 million on sales of $42.5 million, compared to net income of $2.2 million on $39.2 million sales recorded during fourth-quarter 2009, according to analysts polled by Bloomberg. Earnings per share are seen at 45 cents for 2010, up from 15 cents per share reported during 2009. For 2011, earnings per share are likely to surge by 13% to 51 cents, analysts foresee.

The two analysts covering the stock recommend a buy. There are no sell ratings. Analysts polled by Bloomberg expect the stock to gain an average 106% in value from current levels, to $7.

2. China TransInfo Technology is a provider of public transportation information technology systems and related technology solutions in the People's Republic of China. The company will announce its fourth-quarter and full-year 2010 results on March 21.

The company estimates 2010 revenue in the range of $120 million to $122 million as against analysts consensus estimates of $119.5 million. The revenue guidance was raised from an earlier estimate of $120 million. Furthermore, adjusted net income is likely to come in between $16.6 million and $16.9 million, or a 22% to 24% increase from 2009. Based on analysts' consensus estimates, polled by Reuters, earnings are seen at 14 cents per share.

In February, Zacks Investment Research upgraded the stock from underperform to neutral.

1. China Sunergy, through its wholly owned subsidiary, designs, develops, manufactures and sells both monocrystalline and multi-crystalline silicon solar cells. The company sells its solar cell products to Chinese and overseas modules manufacturers and to system integrators. China Sunergy will announce its fourth-quarter and full-year 2010 results on March 24.

For fourth-quarter 2010, the company estimates solar product shipments between 102MW and 108MW. Gross margin is likely to come in between 15% to 16.5%. For full-year 2010, the company forecasts solar products shipments between 350MW and 359MW. In its drive to reduce costs and industry demand, the company expects to reach 400MW of solar cell capacity by the end of 2010 and 680MW of module capacity by the end of first-quarter 2011. Based on analysts' consensus estimates polled by Reuters, earnings per share are seen at 25 cents.

Of the seven analysts covering the stock, 29% recommend a buy, while the remaining suggest a hold. There are no sell ratings on the stock. Analysts polled by Bloomberg expect the stock to gain an average 21%, to $5.1 in value, from current levels.

>>To see these stocks in action, visit the 4 China Earnings Stocks to Watch portfolio on Stockpickr.

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