Longwei Petroleum Announces MaxSoar's Updated Independent Coverage with "Outperform" Rating Outperform Rating and Fair Stock Value Assessment of $5.18 to $5.87 per share
TAIYUAN CITY, China, Nov. 19, 2012 /PRNewswire-FirstCall/ -- Longwei Petroleum Investment Holding Ltd. (NYSE MKT: LPH) ("Longwei" or the "Company"), an energy company engaged in the storage and distribution of finished petroleum products in the People's Republic of China ("PRC"), today announced MaxSoar Financial and Investments LLC ("MaxSoar") updated its independent coverage of Longwei with an "Outperform" rating and a fair stock value assessment of $5.18 to $5.87 per share.
MaxSoar's independent investment analysis team reviewed the financial results for the Company's first fiscal quarter ended September 30, 2012, released in its Form 10-Q on November 13, 2012. "We witness strong and solid growth for the quarter in its product sales volume, revenues, operating income and net income from the results," MaxSoar's analysts stated.
MaxSoar further considered two major catalyst events for the Company in its first fiscal quarter. First, the Company's independent auditors completed a tax reconciliation of Longwei's PRC tax filings to the SAT and SAIC with its SEC filings done in accordance with U.S. GAAP. The results verified no material differences. Secondly, the Company completed its purchase of the Huajie Petroleum assets using its own cash flow to finance the purchase price of approximately US$110.6 million. The new facility nearly doubles the Company's overall storage capacity to 220,000 metric tons. The report also considers the strong macro-economic environment and outlook for the Company's service area within Shanxi Province in the PRC.
MaxSoar's analysts concluded, "Because the reported financial results for the first quarter did not include contribution from [the] Huajie facility (the facility started operating in October) and because there is no significant change in the market environment in which Longwei is running its business since our last update report published on October 11, 2012, we believe that the company's financial results for the first quarter of fiscal 2013 are consistent with our estimates in the last research report. In light of the Company's current stock price level, we reaffirm our "Outperform" rating and $5.18 to $5.87 fair value assessment for the stock."
The updated research report can be accessed using the link below:
About MaxSoar Financial and Investments LLC:
MaxSoar is a professional financial services provider offering investment analysis, asset management, and personal or corporate financial analysis and planning. It has extensive experience in researching, analyzing, and managing a broad spectrum of financial assets including stocks, bonds, mutual funds, real estate properties, and private companies. MaxSoar's knowledge and connections are especially strong in mainland China, Hong Kong, Taiwan, and the western U.S. and Canada. Additional information on the firm and its analysts can be accessed at www.MaxSoar.com.
About Longwei Petroleum Investment Holding Limited
Longwei Petroleum Investment Holding Limited is an energy company engaged in the storage and distribution of finished petroleum products in the People's Republic of China. The Company's oil and gas operations consist of transporting, storing and selling finished petroleum products, entirely in the PRC. The Company's headquarters are located in Taiyuan City, Shanxi Province. The Company has a storage capacity for its products of 220,000 metric tons located at three storage facilities within Shanxi: Taiyuan, Gujiao and Huajie, which have an individual storage capacity of approximately 50,000 metric tons ("mt"), 70,000mt, and 100,000mt, respectively. The Company has the necessary licenses to operate and sell petroleum products not only in Shanxi, but throughout the entire PRC. The Company's storage tanks have the largest storage capacity of any non-government operated entity in Shanxi.
The Company seeks to earn profits by selling its products at competitive prices with timely delivery to transportation companies, coal mining operations, power supply customers, large-scale gas stations and small, independent gas stations. The Company also earns revenue from agency fees by acting as a purchasing agent for other intermediaries in Shanxi, and through limited sales of diesel and gasoline at two retail gas stations, each located at the Company's Taiyuan and Gujiao facilities. The Company seeks to continue to expand its customer base and distribution platform through the utilization of its large storage capacity, which allows the Company the flexibility to take advantage of pricing, supply and demand fluctuations in the marketplace.
Longwei was recently named to the Forbes list of "Asia's 200 Best Under a Billion" from a universe of 15,000 companies. Forbes ranked the companies based on sales growth, earnings growth and return on equity in the past 12 months and over three years. As was reported, Longwei's three-year track record is 45% sales growth, 28% earnings per share growth and 28% return on equity. The Forbes article can be found at: http://www.forbes.com/sites/christinasettimi/2012/07/25/asias-200-best-under-a-billion.
For further information on Longwei Petroleum Investment Holding Limited, please visit http://www.longweipetroleum.com. You may register to receive Longwei Petroleum Investment Holding Limited's future press releases or request to be added to the Company's distribution list by contacting Dave Gentry at firstname.lastname@example.org.
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about Longwei's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of the Company may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Longwei's operations are conducted in the PRC and, accordingly, are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company's results may be adversely affected by changes in the political and social conditions in the PRC and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation. Other potential risks and uncertainties include but are not limited to the ability to procure, properly price, retain and successfully complete projects, and changes in products and competition. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. Readers should review carefully reports or documents the Company files periodically with the Securities and Exchange Commission.
SOURCE Longwei Petroleum Investment Holding Ltd.
http://www.maxsoar.com/research_reports/MaxSoar - Coverage Update No. 201211-1.pdf