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Topic: Growth Stocks

Rising Chinese pork demand pushed up this world stock market investment’s earnings

Zhongpin Inc., symbol HOGS on Nasdaq, is a China-based company that processes meat and other foods.

Zhongpin is one of the world stock market investments we analyze in our Stock Pickers Digest newsletter.

Zhongpin specializes in pork and pork products, as well as fruit and vegetables. It sells 358 meat products, including chilled pork, frozen pork and prepared meats, as well as 34 fruit and vegetable products. Zhongpin focuses on prepared meat, with its higher profit margins, rather than bulk pork.

In the year ended December 31, 2010, Zhongpin’s revenue rose 30.0%, to $946.7 million from $726.0 million in 2009. Earnings jumped 27.9%, to $58.3 million from $45.6 million. Earnings per share rose 12.8%, to $1.67 from $1.48, on more shares outstanding.

The company opened new processing plants in 2010, and continued to build its brand through advertising. In 2011, Zhongpin plans to spend $124.5 million to build more new production facilities in China.

You can get our full analysis, including our clear buy/sell/hold advice on Zhongpin and dozens of other stocks that may be suitable for the part of your portfolio you devote to aggressive investments in Stock Pickers Digest. What’s more, you can get one month free when you subscribe now. Click here to learn how.

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