Buzz Stock of the Day – China Sky One Medical (CSKI)

Business is booming for our buzz stock of the day, China Sky One Medical, Inc. (Nasdaq: CSKI).

The company, which manufactures over-the-counter drugs in China, reported record results for the fourth quarter and 12 months ended December 13, 2008.

Operating income for the year increased 91.6 percent to $35.7 million, and revenues increased 86.2 percent to $91.8 million.

The company started trading on the Nasdaq Global Market on September 16, 2008, and recently completed several key acquisitions, and recently received SFDA final approval for 19 drugs.

China Sky One expects full-year 2009 revenue to increase 40 percent to between $128 million and $130 million, and net profit margin to increase to $38 million to $39 million.

For the trailing 12 month period, China Sky One earned about $5.60 a share on revenue of $78.5 million. The company has about $51 million of cash, and generated $21 million of levered free cash flow.

We like CSKI because the company has continued to demonstrate growth in tough economic times, made some key acquisitions that could be accretive in the very near future, and has hefty 40.3 percent operating margins. The company also has a low P/E ration (8.58) compared to the industry average of 9.39.

“We are confident about the prospects for our business in 2009 and will continue to focus on increasing market share by both strengthening and further refining our successful sales and distribution network, building and enhancing our brand image, and making strategic acquisitions that continue to support our growth,” said Yan-Qing Liu, Chairman and CEO of China Sky One Medical, Inc.

Tags: buzz stocks, healthcare, investing, pharmaceuticals

This entry was posted on Thursday, April 16th, 2009 at 9:11 pm by admin and is filed under Health Care Stocks. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.