American Jianye Greentech predicts 800% Q3 profit growth
American Jianye Greentech (OTCBB: AJGH), a China-based developer, manufacturer and distributor of alcohol-based automobile fuels, has said it expects third quarter profits to total at least $2.5 million, or $0.08 per share, compared to $0.28 million for the same period last year, before the company was listed and fully-operational.
The company anticipates revenue of more than $25 million in Q3 2010, versus $2.2 million last year, reflecting the start of its operations in September 2009.
For the entire year, American Jianye is expectings sales of more than $90 million compared to $9.7 million for 2009, and profits of at least $9.0 million, or $0.28 per share, versus $0.94 million, or $0.03 per share the previous year.
Demand for alcohol-based clean fuel in China, which is driven by the rising cost of gasoline and new environmental mandates, outstrips current supply, which is proving beneficial for companies like American Jianye.
"Alcohol-based fuels cost less to manufacture, are lower cost to the consumer, and are more environmentally friendly than traditional unleaded fuels. Moreover, our fuels have distinct advantages over other alcohol-based fuels as a result of our proprietary and patented catalysts," said chairman and CEO Haipeng Wang.
Given these factors, the company is confident in its assertions that it will quickly gain market share and meet its targets for the year.
Headquartered in Harbin, China, the company's alcohol-based fuels burn with higher efficiency and lower toxic waste emissions than unleaded gasoline. The combination of catalysts in the fuel enhance fuel octane rating and engine power, inhibit the premature oxidation of the fuel, help remove sediment in the carburetor, and prevent the erosion of the engine cylinder surface.
The company was up almost 9% on Monday in the first hour of trading, reaching $0.86 by 10:18am ET.
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