dwaldman

For Those Infrastructure Plays, Everything You Ever Needed To Know About Cement

This is an excellent article. I would like to point out a growing concrete supplier in China that is positioned to capitalize on the massive infrastructure build-out going on in China.

China ACM is located in Beijing and is a major producer of advanced construction materials for large scale commercial, residential, and infrastructure developments. The company is primarily focused on producing and supplying a wide range of advanced ready‐mix concrete materials and has participated in 5 of China’s “10 New Architectural Wonders” and over 100 other projects in 2007. Some of these high profile projects include the Beijing National Airport, Beijing International Airport, Olympic Stadium Birds’ Nestle, Olympic Green Convention Center and the Beijing South Railway Station. Demand for ready-mix concrete is being fueled by recently enacted laws banning onsite concrete production in over 200 cities across China and the strict enforcement of these laws in Beijing and Shanghai, which are China ACM’s key markets.

China ACM (OTCBB: CADC) has a five year record of sustained profitability and consistent growth with $24 million in revenue and $4.8 million of net income for the twelve months ended December 31, 2007. Revenue for the six months increased 30% over the same period last year, yet the stock is currently trading at a price/earnings ratio of approximately 5x. Additionally, the company has provided guidance that it expects to achieve net income of $5.2 million and $9mm for fiscal 2008 and fiscal 2009 (year-end June 30), respectively, which puts the company at a 12 month forward P/E of just 2.7x.

Attached is an overview of the company directly from their website: www.ir-site.com/images...