The company announced that its subsidiary entered a supply contract with Samsung. Under the contract the Sutor subsidiary will supply a total of 6,500 metric tons of Galvalume (steel coated in aluminum-zinc alloy) to Samsung.
The contract is valued at about $5.2 million.
The Galvalume shipments are expected to begin in April 2014.
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TheStreet Ratings team rates SUTOR TECHNOLOGY GROUP LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SUTOR TECHNOLOGY GROUP LTD (SUTR) 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 impressive record of earnings per share growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- SUTOR TECHNOLOGY GROUP LTD has improved earnings per share by 25.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, SUTOR TECHNOLOGY GROUP LTD increased its bottom line by earning $0.43 versus $0.30 in the prior year.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, SUTOR TECHNOLOGY GROUP LTD has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- SUTR has underperformed the S&P 500 Index, declining 9.91% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The gross profit margin for SUTOR TECHNOLOGY GROUP LTD is currently extremely low, coming in at 12.38%. Regardless of SUTR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, SUTR's net profit margin of 4.98% is significantly lower than the industry average.
- You can view the full analysis from the report here: SUTR Ratings Report