New York-based Ludlow China Fund initiates research coverage on Skystar Bio-Pharmaceutical, a leading bio-pharmaceutical company in China, with a price valuation target of $2.50 per share.

For the nine months ending September 30, 2006, the Company reported total revenues of $7.32 million, compared to $4.53 million for the same period in 2005. Net income for the nine months ending September 30, 2006 was $1.44 million, or $0.14 per fully diluted shares, as compared to $0.12 per fully diluted share for the same period in 2005. As of September 30, 2006, the company reported a total of 12,606,199 shares issued and outstanding.

For the fourth quarter of 2006, the Company projects revenue between $1.80 million and $2.00 million. This would be an increase of between 28% and 42% over the $1.41 million in sales reported for the fourth quarter of 2005. For the full year 2006, Skystar estimates revenue of $9.12 million to $9.32 million, an increase of 54% to 57% over the $5.94 million recorded for all of 2005.

In 2003, Skystar received approval from the State Council of China to expand its production facilities and construct a new Good Manufacturing Practice ("GMP") standard plant. Skystar has been accredited as a high-tech enterprise, and the Company's expansion project has gained full support of both Shanxi provincial government and Xi'an municipal government.

The new plant had an approximate cost of US$12 million and occupies an area of approximately 117 acres with a total area of about 126,900 square feet. With the completion of its new facilities, Skystar has started to drastically increase its production capacity to meet the overwhelming demand for its products. This increased demand, partially caused by many competitors being forced out of the industry due to the stringent new GMP Certification Standards passed by the PRC, coupled with the completion of its new GMP Certified facilities allows for robust growth for the company.

Source:未知