Huifeng Bio-Pharmaceutical Technology Inc., located in Xi’an, People’s Republic of China, is focused on developing, producing and selling plant extracts, pharmaceuticals and pharmaceutical raw materials in China and internationally. It is the leading Chinese producer of rutin and related plant-derived chemicals in a class called flavonoids, which have anti-inflammatory, antioxidant and anticoagulant properties.
Huifeng’s production facilities are ISO9001:2000 certified, a necessary international qualification for export sales. The company also holds a Chinese Good Manufacturing Practices (GMP) certification, which was just recently renewed by the SFDA for five years. Products manufactured under GMP conditions have higher quality, consistency and potency assurances.
With a market cap of only $14.94 million, the company trades at a P/E of 2.84 and P/S of 0.72. The company’s balance sheet is solid with $22.05 million in assets and $3.24 million in liabilities. Also of note, management holds a combined 34.51% of the shares outstanding.
Over the past three years, revenues have grown at an average annual rate of 64.77% while EPS (GAAP) has increased 167.70% on average. Huifeng’s book value has also rapidly increased, growing 27.30% per year. Following the recent acquisition of Shangqiu Kexin Rutin Processing Ltd., management expects growth to continue in the following quarters.
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