First China Pharmaceutical Group, a company which is rapidly growing and technologically advanced healthcare products distributor based in Yunnan, China, is announced its results for the year ending December 31, 2011. The company top line was $55 million. The Company is still in the process of consolidating its financial statements in US GAAP
What has excited investors is the surge in the share price of the company. FCPG gained a staggering 70% in value, thus hitting a 15-week record. What is more, the increased investor interest in FCPG stock was indicated by a massive volume of 1.44 million, which is the highest turnover FCPG has generated for the last six-months. However there has not been any dramatic news from the company. Nor has there been active stake picking done by the promoters of the company. Because, the last time FCPG came up with an official announcement was 11 days ago when the company’s management announced projected annual sales revenues of $55 milllion. However, this number is still approximate as the corresponding 10-K form has yet to see the light of day.
A document with SEC has revealed that the company has around $ 711k of cash and cash equivalents. The company also has a debt of around $18.9M in current liabilities vs. $20.98M in current liabilities. This makes the company have a current ratio of 0.9. The chart pattern for six months shows the company seems to be on a positive trigger. We maintain a buy on the company for the next few weeks.