TAIYUAN CITY, China, Nov. 19, 2012 /PRNewswire-FirstCall/ -- Longwei Petroleum Investment Holding Ltd. (NYSE MKT: LPH) ("Longwei" or the "Company"), an energy company engaged in the storage and distribution of finished petroleum products in the People's Republic of China ("PRC"), today announced MaxSoar Financial and Investments LLC ("MaxSoar") updated its independent coverage of Longwei with an "Outperform" rating and a fair stock value assessment of $5.18 to $5.87 per share. MaxSoar's independent investment analysis team reviewed the financial results for the Company's first fiscal quarter ended September 30, 2012, released in its Form 10-Q on November 13, 2012. "We witness strong and solid growth for the quarter in its product sales volume, revenues, operating income and net income from the results," MaxSoar's analysts stated. MaxSoar further considered two major catalyst events for the Company in its first fiscal quarter. First, the Company's independent auditors completed a tax reconciliation of Longwei's PRC tax filings to the SAT and SAIC with its SEC filings done in accordance with U.S. GAAP. The results verified no material differences. Secondly, the Company completed its purchase of the Huajie Petroleum assets using its own cash flow to finance the purchase price of approximately US$110.6 million. The new facility nearly doubles the Company's overall storage capacity to 220,000 metric tons. The report also considers the strong macro-economic environment and outlook for the Company's service area within Shanxi Province in the PRC. MaxSoar's analysts concluded, "Because the reported financial results for the first quarter did not include contribution from [the] Huajie facility (the facility started operating in October) and because there is no significant change in the market environment in which Longwei is running its business since our last update report published on October 11, 2012, we believe that the company's financial results for the first quarter of fiscal 2013 are consistent with our estimates in the last research report. In light of the Company's current stock price level, we reaffirm our "Outperform" rating and $5.18 to $5.87 fair value assessment for the stock." The updated research report can be accessed using the link below:
Shares of Longwei Petroleum Investment Holding Limite (AMEX:LPH) were gapping up Friday morning with an open price 10.5% higher than Thursday's closing price. The stock closed at $1.52 yesterday and opened today's trading at $1.68.