Henan Zhongpin (Nasdaq: HOGS), one of the top pork producers in China, reported phenomenal second quarter 2008 results this morning, and further solidified my belief that this company is likely to reward investors very handsomely over the long haul.
Revenues at Zhongpin (which is both an Investment Advisor pick and a Small Cap Momentum Model Portfolio pick), climbed nearly 120% year-over-year to a record $137.5 million, while gross profit and net income each surged over 100% to $17.1 and $8.5 million, respectively. Each of these numbers is the highest Zhongpin has ever achieved.
Zhongpin also reported record earnings-per-share of $0.29 per fully diluted share, despite earthquake damage at one of their facilities causing production to shut down for a full month.
On the business development front, Zhongpin completed construction of a new processing facility during the quarter, as well as increased the number of retail outlets at which their products are sold. Gross margin was slightly lower, as raw materials continued to climb, though this was mostly passed on to consumers in the form of higher prices.
We will continue to monitor Zhongpin closely as the company executes brilliantly on its expansion goals.