Why Sino-Global Shipping (SINO) Stock Is Up Today

NEW YORK (TheStreet) -- Sino-Global Shipping  (SINO) is up 9.7% to $2.83 in trading Friday.

The increase comes following the company's announcement that it had signed a strategic cooperation agreement with China Ocean Shipping Agency (PENAVICO) to jointly develop their businesses through a cross referral and collaboration agreement.

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The agreement is for one year with the option to renew for another year at the discretion of the companies.

"We are thrilled to work with PENAVICO, an industry leader with over 60 years of rich history of providing international shipping agency, freight forwarding and logistics services to customers all over the world," said Lei Cao, Chairman and Chief Executive Officer of Sino-Global. "We believe both parties will benefit from the cross-selling and upselling opportunities that this Agreement is expected to generate."

TheStreet Ratings team rates SINO-GLOBAL SHIPPING AMERICA as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate SINO-GLOBAL SHIPPING AMERICA (SINO) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been poor profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The gross profit margin for SINO-GLOBAL SHIPPING AMERICA is currently lower than what is desirable, coming in at 31.47%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 20.22% trails the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Transportation Infrastructure industry and the overall market, SINO-GLOBAL SHIPPING AMERICA's return on equity significantly trails that of both the industry average and the S&P 500.
  • SINO, with its very weak revenue results, has greatly underperformed against the industry average of 14.4%. Since the same quarter one year prior, revenues plummeted by 61.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • SINO-GLOBAL SHIPPING AMERICA reported significant earnings per share improvement 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 year. During the past fiscal year, SINO-GLOBAL SHIPPING AMERICA continued to lose money by earning -$0.39 versus -$0.61 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Transportation Infrastructure industry. The net income increased by 271.2% when compared to the same quarter one year prior, rising from -$0.29 million to $0.50 million.
  • You can view the full analysis from the report here: SINO Ratings Report
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