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Yongye International

Yongye International.

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Yongye International

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  1. Yongye International

  2. Yongye International is a leading crop nutrient company headquartered in Beijing, with its production facilities located in Hohhot, Inner Mongolia, China. Yongye's principal product is a liquid crop nutrient which accounted for 99.3% of total sales for the first half of 2011. The Company also produces powder animal nutrient product which is mainly used for dairy cows. Both products are sold under the trade name "Shengmingsu," which means "life essential" in Chinese. The Company's patented formula utilizes fulvic acid as the primary compound base and is combined with various micro and macro nutrients that are essential for the health of the crops. The Company sells its products primarily to provincial level distributors, who sell to the end-users either directly or indirectly through county-level and village-level distributors. OverView

  3. Key FInancials • Purchase Price= $7.25 • Recent Price= $4.37 • Shares Held= 280 • $ Gain/Loss= -39.83% • Current Value= $1223.60 • FV Estimate= X • 1yr Target Est.= $25.50 • Financial Leverage= 1.15 • 52 week range= $3.01-8.65 • Market Cap= $226 Million • Projected Div Yield= N/A • P/E= 2.5 • Profit Margin= 22.62% • ROA = 20.96% • ROE = 31.80%

  4. YONG Vs Industry

  5. 1 year chart More charts

  6. Yongye’s revenue rose 95.9% from the year ago quarter to 140.6 million. • 21% of the total sales came from new provincial markets. • Cramer “No, no, no. Stick with Deere & Company. Don‘t go with the Chinese Ag Stocks. Recent News

  7. Survived the Financial Crisis. Can take advantage of the Large Chinese population and ever growing need for food in a fast growing population. Strengths

  8. Numerous competitors that also have large stakes in the industry. (POT, TNH, UAN, CHA) Weaknesses

  9. Instead of buying humanic acid from intermediaries, the company is now using ignite coal from its own facility to extract its nutrients. Received government approval for a mineral resource exploration permit for its designated project site in Wuchuan. Opportunities

  10. Anti-Chinese short sellers Aggressive marketing efforts may have adverse effect if the global agricultural boom is not as promising as expected. Threats

  11. Hold Reevaluate middle of next semester to see how the agricultural boom plays out. Recommendations

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