China Sky One Hits New High on Positive Guidance

China Sky One Medical, Inc. (AMEX: CSY) increased its guidance slightly for its second quarter and full-year 2008 financial results. The new 2008 goal is $82 million in revenue, a slight increase from the original $80 million forecast.

Investors responded very positively to the news, sending China Sky One $1.70 higher to $15.30, an all-time high and an increase of 13%. It doesn’t hurt the company’s stock performance that China Sky One recently moved to the AMEX exchange from the OTC Bulletin Board.

Q2 revenue is now expected to be just $19.5 million, which China Sky One points out is a 78% increase over the first quarter of 2008. Gross margins will continue to be in the 78% range. Net income for Q2 is projected to reach $6.4 million, or $0.43 per share, fully diluted, a profit margin of almost 33%.

China Sky One attributed the increase to three factors:

• Products from Heilongjiang Tianlong Pharmaceutical, a March acquisition for China Sky One, enjoyed a strong initial reception;
• Advertising promotions for China Sky One’s external use products (Slim Patch Body-Beauty Plaster, Hemorrhoid Ointment, Compound Camphor Cream and Blood Pressure Depress Patches) have stimulated sales;
• The second and third quarters are historically strong for China Sky One.

For all of 2008, China Sky One calls for net income to be about $26.3 million, or $1.76 per fully diluted share. Net margin is expected to be approximately 32%.

Disclosure: none.

Comments

[RUFCrazy:]

Been followoing this one since $8 a year ago. Will be a huge winner. Today's news of another product added with $3 mil rev forecasted for Q4 is icing on the cake !

2008 Jul 08 10:55 PM