Zhongpin Inc. (NASDAQ:HOGS)

tupefaasoa (< 20) Submitted: 3/28/2008 1:46:06 AM : Start Price: $9.15 HOGS Score: +0.70

buy

stox4all (< 20) Submitted: 1/25/2008 12:17:04 PM : Start Price: $12.65 HOGS Score: -27.05

Good growth possibilities.

johnnykillz (25.80) Submitted: 1/17/2008 12:42:29 PM : Start Price: $12.51 HOGS Score: -25.94

Chinese, pork, & KFC

JIW33103 (56.82) Submitted: 1/14/2008 6:41:05 PM : Start Price: $13.84 HOGS Score: -29.91

Hogs should grow and get fat with food and time

(HOGS)should grow and get fat with $$$$ and time

HOGS should do just fine in a growing market,

with modern plants and proccessing they should grow fast. They are a provider for some big names already growing in China, McDonalds, KFC etc........

milowolffmf (< 20) Submitted: 1/11/2008 4:15:14 PM : Start Price: $13.35 HOGS Score: -26.44

Co. exports pork to the world. Poor people getting rich eat more pork.

stockguy07 (< 20) Submitted: 1/9/2008 6:12:27 PM : Start Price: $12.65 HOGS Score: -23.54

Trader Mark pick

TheNothing (< 20) Submitted: 1/9/2008 9:28:58 AM : Start Price: $14.21 HOGS Score: -32.20

high insider ownership
CEO seems to know what he's doing
building brand name

Stasi (< 20) Submitted: 11/19/2007 7:03:56 PM : Start Price: $12.80 HOGS Score: -21.95

Zhongpin is a Chinese pork processor. They have three main lines of business: chilled pork, frozen pork, and processed pork. Raw pork is not taxed in China, so even though operating margins are less on their chilled pork than their processed pork, this chilled segment has greater after tax margin.

China consumes 50% of the world's pork, so that's not a bad business to be in. >75% of pork in China is sold/purchased through wet markets. That means pork butchered on the premises & hung or laid out in open air for purchase. Imagine flies, dust, and a host of other unhygienic things.

ZHNP is a modern pork processor that packages meat cuts in refrigerated, hygienic conditions for sale through refrigerated counters or distribution channels. Just like you or I would buy chilled or frozen pork at the supermarket. That's the standard in the western world but it's a new thing in most of China. Everywhere in the world, when consumers were offered the choice between wet market cuts & chilled cuts distributed in a supermarket setting, consumers overwhelmingly chose the supermarket setting. Expect China to follow suit, meaning that 75% to 80% wet market share is there for the taking

No single pork processor in the Chinese market holds more than 10% market share. That makes sense when you consider the necessarily local nature of wet market distribution, and the fact that modern distribution channels hold less than 25% market share s they build out cold storage distribution chains. This means first movers will gain a permanent advantage, and ZHNP is moving first in a big way.

Capacity expansion in recent quarters is as follows:

Quarter Facility Chilled Frozen Total
2q07 Zhumadian 43200 28800 72000
3q07 Deyang 22500 22500 45000
3q07 Anyang 37800 25200 63000
4q07 Tianjin 42400 10600 53000

From 1q07 to 3q07, capacity nearly doubled. That's a lot to digest (get it?) & new plants don't ramp to full capacity overnight. During the last call mgmt indicated Zhumadian had reached about 80% utilization. They expected new plants to reach target utilization within a couple of quarters.

As a short term catalyst, the company's application to Nasdaq has been accepted without further comment. Based on commentary from their last conference call it's very likely they could be listed before the end of the year. It wouldn't be unreasonable for a nasdaq-traded company in Zhongpin's industry with Zhongpin's growth profile to trade at a peer multiple 17. Based on annualized earnings from 3q07, that would mean a $17 stock price.

Medium term catalysts include bringing newly added capacity up to full utilization. Based on past margins & ASPs that would mean 29 to 32 cents per fully diluted share in earnings per quarter. At 15x to 17x FDEPS, that's an $18 to $20 stock price.

Longer term, ZHNP is already working on construction of another 150k tons of annual capacity that will come on line in 2h08. They have also received a gov't grant to develop 30k tons/year fresh fruit & vegetable processing capability, which is scheduled to be on line at the end of 2008. This segment actually has higher after tax margin than chilled pork, so adding capacity there could be a profitable expansion.

ajaxfan11 (55.97) Submitted: 10/28/2007 8:25:05 PM : Start Price: $12.55 HOGS Score: -14.30

I was in China recently and Pork is included in almost every meal...

TAUROBUBBLE (89.57) Submitted: 10/23/2007 5:03:22 AM : Start Price: $11.25 HOGS Score: -7.02

Supply & Demand - plus they do love Pork and Govt ties means they can benefit from the Republics spending in the sector...China's food supply to demand is the big factor here!

mighelinger (< 20) Submitted: 10/17/2007 5:53:32 PM : Start Price: $13.60 HOGS Score: -19.29

China Rotation

FJDIII (72.65) Submitted: 10/10/2007 6:14:01 AM : Start Price: $12.10 HOGS Score: -10.26

Demand for pork will continue to explode. Prices for pork are soaring (49% annual inflation) because of supply issues. The Chinese government even has a Strategic Pork Reserve. This company will obviously benefit from it. I think they are well positioned. I don't own shares but ready to wade in with about 500-1000 shares.

fencerd4 (< 20) Submitted: 10/8/2007 10:44:18 AM : Start Price: $12.40 HOGS Score: -12.62

Zhongpin is a company supported by the Chinese government. Due to the nation's rising middle class, the demand for clean food is very high. In the US, we eat beef, but in China, pork is the national meat. This is not a hit and run company. The company's focus is inline with the Chinese government's creation of a international brand focus. In a Chinese interview conducted on television, the VP said their President/CEO once drank water from the dish sink to show all the employees how important sanitation is.

mjgrzywa (< 20) Submitted: 10/6/2007 7:13:00 PM : Start Price: $13.60 HOGS Score: -19.29

Has been beating it since May 07 and just rec-

ently spiked up to 20%.

SmallCapKing (< 20) Submitted: 10/5/2007 8:20:39 AM : Start Price: $10.05 HOGS Score: +5.15

Pork and consumer product play in China. Has been relatively unnoticed, but moving to Nasdaq.

Production capabilities doubling by end of next year into early next year.

VERY UNDERVALUED!!

Great metrics all the way around.

dchanko (42.12) Submitted: 10/3/2007 10:17:04 PM : Start Price: $10.20 HOGS Score: +3.23

just following the flow