China GengSheng Minerals, Inc. (CHGS) Jumps After Earnings

Dec. 5, 2010 - China GengSheng Minerals, Inc. jumped 13.73% to trade close at $1.57 on no relevant news of accord. Shares of the Company gained 19 cents on 482.083K shares, lower than 3 month average trading volume of 573.837K shares.
The Company had a 52-week trading range of $1.10-$4.35 and a market capitalization of $38.13 million at a P/E of 9.4. Shares of CHGS are trading below its 50-Day Moving Average of $1.67 but above its 200-Day Moving Average of $1.43 with a ROE of 8.3%.
Total revenue earned by the Company was at a record high of $16.7 million reflecting a 11.6% increase quarter-over-quarter and 12.2% increase year-over-year. The revenue spike was due to the robust growth in fracture proppant sales amounting $5.0 million, an increase of 91.4% year-over-year and 62.8% quarter-over-quarter.
Net income attributable to the common stockholders came up to $0.9 million, or $0.04 per share, compared with approximately $1.7 million in the third quarter of 2009. The decrease in net income was due to an investment made by the Company for research and development to expand our refractory and industrial ceramics offerings and higher personnel costs.
CHGS has also increased its annual production capacity to 75,000 metric tons and continues to ramp its fracture proppant business and recently introduced fine precision abrasives products which represents large and growing market opportunities.
China GengSheng Minerals, Inc. operates in the materials technology industry through its direct and indirect subsidiaries in China. It is engaged in developing, manufacturing and retailing of a range of mineral-based, heat-resistant products capable of withstanding high temperature, saving energy and boosting productivity in industries, such as steel and oil. Its products include refractory products, industrial ceramics, fracture proppants and fine precision abrasives.