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Sinovac Biotech Ltd. (NSDQ: SVA) was selected by China Business Media as one of China's Top 10 most competitive companies listed overseas for 2009. The honor was given to Sinovac at the 2009 China Business Annual Meeting on Enterprise Competitiveness.

The Research Center of Chinese Industries and Enterprise Competitiveness and China Business Media have developed a “competitiveness model” to evaluate companies. The model is based on sales revenue, net assets, net profits, growth rate of net profits, and return on net assets in the past three years.

For the past few years, Sinovac’s hepatitis B vaccine, Healive has delivered the majority of the company’s revenues. The company developed a seasonal flu vaccine, Anflu, and then a pandemic flu vaccine, Panflu, though the products did not add significantly to Sinovac’s revenue stream. All of that changed this year with the fear caused by the H1N1 flu outbreak, which forced China’s national and local governments to supply flu vaccine to their populations. As a result, Sinovac’s two flu vaccines will provide a large boost to the company’s fortunes this year.

In Q3, Sinovac’s revenues increased by 142%, jumping from $8.7 million to $21.4 million. Almost all of the growth came from flu vaccines, while the company’s hepatitis A vaccine’s sales were flat. Only the September month of Q3 saw significant flu revenues, implying Q4 could be a very strong quarter.

The anticipation of a new and lucrative market sent Sinovac’s shares from a low of $1.09 in March to a high of $12.50 in September. The euphoria has worn off and Sinovac is currently trading at $6.22.

Disclosure: none.

Source: Sinovac Named Among China's Top 10 Most Competitive Companies