ADY - Feihe International Inc (old American Dairy)

Huge buying opportunity:

$22.09 13.76 (38.38%)
Bid 22.08
Ask 22.30
High 29.00
Low 22.09
Volume 522,453 (Heavy)

American Dairy Provides 2Q09 and FY2009 Revenue Guidance and Business Update
7:00a ET July 13, 2009 (PR NewsWire)
American Dairy, Inc. (NYSE: ADY) ("American Dairy" or the "Company"), one of the leading producers and distributors of premium infant formula, milk powder and soybean, rice and walnut products in China, today provided preliminary second quarter 2009 revenue results, preliminary full year 2009 revenue guidance and a business update.

American Dairy expects second quarter 2009 revenue to increase by approximately 10% year over year to approximately $41.0 million from $37.3 million, the revenue reported in the second quarter of 2008 from continuing operations. The corresponding quarterly revenue numbers from continuing operations for the third and fourth quarters of 2008 were $37.2 million and $79.6 million, respectively. More importantly, sales in the Company's core infant formula business in the second quarter of 2009 should increase by more than 100% year over year. The Company also provided guidance for full year 2009 revenues of $330-$360 million, representing an annual growth rate of approximately 80% from 2008.

Mr. Jonathan H. Chou, the Company's Chief Financial Officer comments, "Second quarter 2009 sales performance continues to be strong notwithstanding the run down in inventories in the sales channel caused by newly-mandated SFDA safety disclosures on all food packaging in China to bring them more in line with international standards. In addition, China Investment Corp. (CIC) data recently reported American Dairy's Feihe brands market share at approximately 6.4% in China's infant formula market, as of May 2009."

Mr. Leng You-Bin, the Company's Chief Executive Officer states, "Our focus in the coming years is to become a top-tier producer of branded infant milk formula products. I believe we have only just begun to recognize growth in the infant milk formula market, and we recently made investments to help us achieve these market share goals."

Mr. Liu Hua, Vice Chairman explains, "We intend to achieve this through continued investment in brand awareness of our Feihe brand particularly in Tier 1 cities and other parts of China, while strengthening our existing, dominant presence in the North and East of the country. We will increase our point of sales presence to at least 100,000 retail locations throughout China, up from the 80,000 locations as of today and compared to 50,000 locations at the beginning of 2009. For example, we increased our distributor base to over 550 from 450 at the start of the year. We increased our sales force by 50% in six months to 1,500 sales people today compared with 1,000 at the start of the year. We also invested in additional milk supply, which we control for quality purposes, and now have 10,000 Australian Holstein milk producing cows, up from 8,000 at the start of the year. We will aggressively manage all of these efforts to drive our market share higher over time, and ultimately create one of the leading infant formula brands in China."

About American Dairy, Inc.

American Dairy, Inc. (NYSE: ADY) is one of the leading producers and distributors of premium infant formula, milk powder, and soybean, rice and walnut products in the People's Republic of China. American Dairy conducts operations in China through its wholly owned subsidiary, Feihe Dairy, and other subsidiaries. Founded in 1962, Feihe Dairy is headquartered in Beijing, China, and has processing and distribution facilities in Kedong, Qiqihaer, Baiquan, Gannan, Longjiang, Shanxi, and Langfang. Using proprietary processing techniques, American Dairy makes products that are specially formulated for particular ages, dietary needs and health concerns. American Dairy has over 200 company-owned milk collection stations, two dairy farms, six production facilities with an aggregate milk powder production capacity of approximately 1,220 tons per day and an extensive distribution network that reaches over 80,000 retail outlets throughout China. For more information about American Dairy, please visit http://www.americandairyinc.com.

Cautionary Note Regarding Forward-Looking Statements

This document contains forward-looking information about the Company's operating results and business prospects that involve substantial risks and uncertainties. Statements that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These statements include, but are not limited to, statements about the Company's plans, objectives, expectations, strategies, intentions or other characterizations of future events or circumstances and are generally identified by the words "may," "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "could," "would," and similar expressions. Because these forward-looking statements are subject to a number of risks and uncertainties, the Company's actual results could differ materially from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the heading "Risk Factors" in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2008, quarterly report on Form 10-Q for its first quarter in 2009, and in current reports on Form 8-K filed with the United States Securities and Exchange Commission and available at www.sec.gov. The Company assumes no obligation to update any such forward-looking statements.

SOURCE American Dairy, Inc.

http://www.americandairyinc.com

Thanks for the post. Made a quick 2% with 1k shares.

I cought 1k shares at 20.42. Will hold thru the week.

Saw this on the top/bottom performers this morning. Filling the gap from a couple of month ago - hmmm, looks good for a long trade soon.

I should have held. When prices jump around like this I get a minor heart attack. If I held for a little bit longer would have made much more. In at 20.40 out @ 20.80

UGH! I got stopped out when it didn't even hit my act price! Was in again @ 21.70 and put a stop @ 21.43 went to 21.45 and I got stopped out FRIKKIN stopped out @ 21.54. UGH

I'm in @ 21.63

I guess the stock realized it's only a 10 - 15 stock

I guess maybe it realized differently . . .

$22.65 2.57 (12.80%)
Bid 22.65
Ask 22.71
High 23.18
Low 20.81
Volume 773,925 (Heavy)

Sold 1/2 my shares this morning for quite a nice chunk of change.

$26.80 2.75 (11.43%)
Bid 26.72
Ask 26.82
High 27.32
Low 24.75
Volume 892,686 (Heavy)

I got in when I saw your post and I did decent myself, good call...u think a pop tomorrow again?

I definitely think this has future value, but as for swing trading it, I would say today was the day. I got out of all of my shares at $27, made about $13k on this stock today. It may see $30 again in the next few weeks, but it did what I thought it would, and I didn't want to get greedy.

I needed a day like today, bad!! Been hurting the last 3 weeks, and made back most of those losses today.

Yeah i got out too since Im agreeing with you on where itll go...best of luck getting back the rest of those losses. Find any other winners in your book send me message, greatly appreciated.

Someone called into Cramer the other night and he told the guy to get out now after the 45% drop. I hope that the guy didn't listen. He'd be kicking himself now if he did.

Potentially Interesting

Feihe International, Inc. (Feihe International), formerly American Dairy, Inc., producer and distributor of milk powder, soybean milk powder, and related dairy products in the People's Republic of China (PRC). As of December 31, 2009, the Company had over 200 Company-owned milk collection stations, two Company-owned dairy farms, seven production facilities with an aggregate milk powder production capacity of approximately 1,234 tons per day and a distribution network that reaches over 95,000 retail outlets throughout China. Its subsidiaries include Heilongjiang Feihe Dairy Co., Limited (Feihe Dairy), which produces, packages and distributes milk powder and other dairy products; Gannan Flying Crane Dairy Products Co., Limited (Gannan Feihe), which produces milk products; and Langfang Flying Crane Dairy Products Co., Limited (Langfang Feihe). In September 2011, the Company sold two dairy farms...

Feihe International, Inc. Reports First Quarter 2012 Financial Results
1 days 12 hours 30 minutes ago - PR Newswire via Comtex
Feihe International, Inc. (NYSE: ADY; "Feihe International" or the "Company"), one of the leading producers and distributors of premium infant formula, milk powder, and soybean, rice and walnut products in China, today announced financial results for the first quarter of 2012. The Company will hold a conference call today at 8:00 am ET.

First Quarter 2012 Financial Highlights:

Revenue of $62.9 million in 1Q 2012 vs. $67.7 million in 1Q 2011:

Revenue from branded milk powder products was $59.4 million, or 94.4% of total sales, in 1Q 2012 vs. $47.9 million, or 70.8% of total sales, in 1Q 2011

Revenue from raw milk powder was $0.9 million, or 1.4% of total sales, in 1Q 2012 vs. $16.1 million, or 23.8% of total sales, in 1Q 2011, and $24.8 million, or 28.5% of total sales in 4Q 2011

Gross profit increased to $34.0 million, or 39.3%, in 1Q 2012 vs. $24.4 million in 1Q 2011, and up from $30.9 million in 4Q 2011

Gross margin was 54.0% in 1Q 2012 vs. 36.0% in 1Q 2011, up from 35.5% in 4Q 2011

Income from operations was $9.7 million in 1Q 2012 vs. $5.0 million in 1Q 2011, and up significantly from a loss of $3.8 million in 4Q 2011

Net income was $8.3 million in 1Q 2012 vs. $4.7 million in 1Q 2011, and up significantly from a loss of $10.5 million in 4Q 2011

Diluted net income (loss) from continuing operations per common share ("EPS") was $0.40 in 1Q 2012 vs. $0.23 in 1Q 2011, and up significantly from $(0.31) in 4Q 2011

Mr. Leng You Bin, the Company's Chairman and Chief Executive Officer, stated, "We are extremely pleased with our first quarter results. Our high margin and strongly improved net income demonstrated the effectiveness of our decision to concentrate on the sales of our premium branded infant formula products. In particular, sales of AstroBaby grew 203.2% and Feifan grew 74.6% compared to the first quarter of 2011. Net income improved 179.0% in the first quarter of 2012 compared with the fourth quarter of 2011. We will remain focused and committed to expanding sales of our premium infant formula."

The Company's revenue of $62.9 million in the first quarter of 2012 represents a decrease of $4.8 million compared to the first quarter of 2011. This decrease was primarily attributable to a $15.2 million decrease in sales of raw milk powder and a $1.5 million decrease in sales of soybean powder, offset in part by sales of milk powder of $11.5 million. This decrease more broadly reflects the Company's decision to decrease the production of raw milk powder, which generated a negative margin during the first quarter of 2012.

The Company's gross profit was $34.0 million in the first quarter of 2012, up 39.3% from $24.4 million in the first quarter of 2011, and up 10.0% sequentially from $30.9 million in the fourth quarter of 2011. Gross margin for the first quarter of 2012 was 54.0%, compared to 36.0% in the first quarter of 2011, up from 35.5% in the fourth quarter of 2011. The increase in the Company's gross profit for the first quarter of 2012 was primarily due to increased sales of premium and super-premium milk powder and decreased cost of raw milk powder.

The Company's income from operations increased to $9.7 million in the first quarter of 2012, up from $5.0 million in the first quarter of 2011, and up significantly from a loss of $3.8 million in the fourth quarter of 2011. Sales and marketing expenses increased $2.8 million, or 18.2%, to $18.8 million in the first quarter of 2012 from $15.9 million in the first quarter of 2011, and decreased 24.8% compared to $25.0 million in the fourth quarter of 2011. General and administrative expenses decreased to $5.6 million in the first quarter of 2012 from $5.7 million in the first quarter of 2011, and decreased $4.1 million, or 42.3%, compared to $9.7 million in the fourth quarter of 2011.

The Company's net income attributable to the Company for the first quarter of 2012 was $8.3 million, or diluted EPS of $0.40, an increase from $4.7 million, or diluted EPS of $0.23, in the first quarter in 2011, and a significant increase from the net loss attributable to the Company of $10.5 million, or diluted EPS of $(0.31), in the fourth quarter of 2011.

As of March 31, 2012, the Company had cash and cash equivalents of $9.8 million and total current assets of $194.8 million, compared to cash and cash equivalents of $15.4 million and total current assets of $200.5 million as of December 31, 2011. The Company had working capital of $18.6 million as of March 31, 2012.

Mr. Liu Hua, the Company's Vice Chairman and Chief Financial Officer, stated, "We are pleased to report our first quarter 2012 financial results today. Given our strong growth, we are very confident in our business going forward. In addition, we completed the redemption of all of Sequoia's redeemable common stock in April 2012. We are continuing our plan of focusing on sales of premium products and look forward to bringing value to consumers and our shareholders."

quite the run...4bagger in 4 months