China Biologic Products given a 'strong buy' ranking by Zacks, after record fourth-quarter results

China Biologic Products, a plasma-based biopharmaceutical company which recently reported record revenue for the fourth quarter and 2009, is cheap, trading at just 7.8x forward earnings, comments analysts at Zacks Investment Research. It has an indirect majority-owned subsidiary, Shandong Taibang, and equity investments in Xi'an Huitian and Chongqing Dalin. The company produces and manufactures plasma products, they note.

On March 23, China Biologic reported its fourth quarter results and easily surprised on the Zacks Consensus Estimate by 91%. Earnings per share were $0.44 compared to the consensus of $0.23. This is the first earnings beat for the company, which analysts only just started covering as it was first listed on the Nasdaq during 2009. Revenue rose 185.6% to $37.6 million. This gain included Dalin's sales, of which the company closed on its 90% acquisition of that company during 2009.

'In addition, we believe that the successful implementation of the company's strategic marketing efforts has attracted more donors to our plasma collection centers and has resulted in an increase in our overall collection volume,' said Chao Ming Zhao, chief executive of the firm.