Home HealthCare Healthcare Stocks In The News: Shineco, Inc. (“Shineco” or the “Company”; NASDAQ:...

Healthcare Stocks In The News: Shineco, Inc. (“Shineco” or the “Company”; NASDAQ: TYHT)

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On Monday, Shares of Shineco, Inc., gained 4.24percent to $4.18. The 52-week range of the share price is from $3.02 – $6.33. The beta value for this stock stands at N/A points, while its earnings per share (EPS) was $0.37. The company has total market capitalization of $96.22M and a total of 23.02M outstanding shares.

Shineco, Inc., a creator and distributor of Chinese herbal medicines, organic agricultural produce, specialized textiles, and other health and well-being concentrated plant-based goods in China, recently declared its financial results for the 3rd– quarter finished March 31, 2017.

Mr. Yuying Zhang, Chairman and CEO of Shineco, Inc., remarked, “We are very pleased to declare solid financial results for the 3rd- quarter of 2017 with meaningful development of a 3.60 percent boost in revenues and 10.30 percent boost in net income. We saw continued development in the medicine market as the sales of our Luobuma or “Bluish Dogbane” goods increased by 2.70 percent and other agricultural manufactured goods increased by 10.70 percent, respectively. Our margins, numbering both gross margin and operating margin were also enhanced in the 3rd- quarter, highlighting our strong execution despite a relatively challenging macro and industry environment. Looking forward, we imagine to continue increasing our geographic presence within the China market. We believe we are well positioned for a strong growth in the years to come.”

Revenues increased by 3.60 percent to $7.940M for the 3- months finished March 31, 2017 from $7.660M for the similar period of last year, mainly because of increased sales of goods.

Gross profit increased by 19.90 percent to $2.600M for the 3- months finished March 31, 2017 from $2.170M for the similar period of last year. Gross margin increased by 4.40% points to 32.80 percent from 28.30 percent for the similar period of last year.

Net income attributable to Shineco increased by 10.30 percent to $1.920M, or $0.0910 per basic and diluted share, for the 3- months finished March 31, 2017 from $1.740M, or $0.090 per basic and diluted share, for the similar period of last year. The boosts in net income and earnings per share were mainly because of a boost in gross profit, partially offset by a boost in operating costs and a reduce in other income.

3rd- Quarter of 2017 Financial Results:

Revenues:

  • Revenues for the 3- months finished March 31, 2017 increased by $0.280M, or 3.60 percent, to $7.940M from $7.660M for the similar period of last year, mainly because of increased sales of goods.
  • Revenues from Luobuma goods increased by $0.030M, or 2.70 percent, to $1.120M for the 3- months finished March 31, 2017 from $1.090M for the similar period of last year, mainly because of the boost in sales price of our goods.
  • Revenues from Chinese medicinal herbal goods reduced by $0.120M, or 3.70 percent, to $3.050M for the 3- months finished March 31, 2017 from $3.170M for the similar period of last year. The reduce was mainly because of the depreciation of RMB against USD. The average currency exchange rates for the 3- months finished March 31, 2017 and 2016 were 1.00 RMB to $0.14510 USD and 1.00 RMB to $0.15290 USD, respectively, which represented a reduce of 5.10 percent.
  • Revenues from other agricultural goods increased by $0.370M, or 10.70 percent, to $3.770M for the 3- months finished March 31, 2017 from $3.410M for the similar period of last year. The boost was mainly attributable to the boost in the unit price of our yew trees.

Gross profit and Gross Margin:

  • Total cost of goods sold reduced by $0.150M, or 2.80 percent, to $5.340M for the 3- months finished March 31, 2017 from $5.490M for the similar period of last year. Gross profit increased by $0.430M, or 19.90 percent, to $2.600M for the 3- months finished March 31, 2017 from $2.170M for the similar period of last year. Overall gross margin increased by 4.40% points to 32.80 percent for the 3- months finished March 31, 2017, contrast to 28.30 percent for the similar period of last year.
  • Gross margins for Luobuma goods, Chinese medicinal herbal goods, and other agricultural goods were 49.60 percent, 25.20 percent, and 34.40 percent, respectively, for the 3- months finished March 31, 2017. This contrast to gross margins for Luobuma goods, Chinese medicinal herbal goods, and other agricultural goods of 55.00 percent, 20.00 percent, and 28.10 percent, respectively, for the similar period of last year.

Operating income:

  • Selling costs reduced by $0.060M, or 15.90 percent, to $0.300M for the 3- months finished March 31, 2017 from $0.360M for the similar period of last year, mainly because of reduced service fees of e-commerce websites throughout the 3- months finished March 31, 2017, contrast to the similar period of last year. General and administrative costs increased by $0.170M, or 36.50 percent, to $0.630M for the 3- months finished March 31, 2017 from $0.460M for the similar period of last year. The boost in general and administrative expenses was mainly attributable to the increased labor expenses in addition to expensed related to our initial public offerings such as attorney fees and auditing fees. As a result, total operating expenses increased by $0.110M, or 13.5 percent, to $0.940M for the 3- months finished March 31, 2017 from $0.820M for the similar period of last year.
  • Operating income increased by $0.320M, or 23.80 percent, to $1.670M for the 3- months finished March 31, 2017 from $1.350M for the similar period of last year. Operating margin was 21.00 percent for the 3- months finished March 31, 2017, contrast to 17.60 percent for the similar period of last year.

Net income:

Net income increased by $0.180M, or 10.4 percent, to $1.960M for the 3- months finished March 31, 2017 from $1.770M for the similar period of last year. After the deduction of non-controlling interests, net income attributable to common shareholders for the 3- months finished March 31, 2017 was $1.920M, or $0.0910 per basic and diluted share. This contrast to net income attributable to common investors of $1.740M, $0.09 per basic and diluted share, for the similar period of last year.

Revenues:

  • Revenues for the 9- months finished March 31, 2017 reduced by $1.50M, or 5.7 percent, to $25.530M from $27.070M for the similar period of last year, mainly because of both reduced sales price and reduced sales volume of our goods in addition to the depreciation of RMB against USD.
  • Revenues from Luobuma goods reduced by $0.770M, or 21.70 percent, to $2.770M for the 9- months finished March 31, 2017 from $3.540M for the similar period of last year, mainly because of both the reduced sales price and reduced sales volume of our goods.
  • Revenues from Chinese medicinal herbal goods reduced by $0.710M, or 6.80 percent, to $9.730M for the 9- months finished March 31, 2017 from $10.430M for the similar period of last year. The reduce was mainly because of the depreciation of RMB against USD. The average currency exchange rates for the 9- months finished March 31, 2017 and 2016 were 1.00 RMB to $0.14720 USD and 1.00 RMB to $0.15630 USD, respectively, which represented a reduce of 5.80 percent. Throughout the 9- months finished March 31, 2017, in order to meet the qualifications of a new standard promulgated by the local government, the Company reduced production of certain types of traditional Chinese medicinal herbal goods.
  • Revenues from other agricultural goods reduced by $0.070M, or 0.50 percent, to $13.040M for the 9- months finished March 31, 2017 from $13.1M for the similar period of last year. The reduce was mainly attributable to the depreciation of RMB against USD as mentioned above.

Gross profit and Gross Margin:

  • Total cost of goods sold reduced by $1.110M, or 6.1 percent, to $17.060M for the 9- months finished March 31, 2017 from $18.170M for the similar period of last year. Gross profit reduced by $0.430M, or 4.90 percent, to $8.470M for the 9- months finished March 31, 2017 from $8.9M for the similar period of last year. Overall gross margin increased by 0.30 percentage points to 33.20 percent for the 9- months finished March 31, 2017, contrast to 32.90 percent for the similar period of last year.
  • Gross margins for Luobuma goods, Chinese medicinal herbal goods, and other agricultural goods were 50.40 percent, 26.00 percent, and 35.30 percent, respectively, for the 9- months finished March 31, 2017. This contrast to gross margins for Luobuma goods, Chinese medicinal herbal goods, and other agricultural goods of 53.70 percent, 23.20 percent, and 35.50 percent, respectively, for the similar period of last year.

Operating income:

Selling costs reduced by $0.180M, or 13.0 percent, to $1.190M for the 9- months finished March 31, 2017 from $1.360M for the similar period of last year, mainly because of reduced advertising costs, promotion costs, and service fees of e-commerce websites, partially offset by increased rent cost of warehouses throughout the 9- months finished March 31, 2017 contrast to the similar period of 2016. General and administrative costs increased by $0.490M, or 31.70 percent, to $2.030M for the 9- months finished March 31, 2017 from $1.540M for the similar period of last year. The boost in general and administrative costs was mainly attributable to the increased labor costs in addition to costs related to our initial public offerings, such as attorney feels, consulting fees and auditing fees. As a result, total operating costs increased by $0.310M, or 10.70 percent, to $3.220M for the 9- months finished March 31, 2017 from $2.9M for the similar period of last year.

Operating income reduced by $0.740M, or 12.40 percent, to $5.250M for the 9- months finished March 31, 2017 from $6.0 M for the similar period of last year. Operating margin was 20.40 percent for the 9- months finished March 31, 2017, contrast to 22.20 percent for the similar period of last year.

Net income:

Net income reduced by $0.630M, or 9.10 percent, to $6.230M for the 9- months finished March 31, 2017 from $6.860M for the similar period of last year. After the deduction of non-controlling interests, net income attributable to common shareholders for the 9- months finished March 31, 2017 was $6.120M, or $0.3 per basic and diluted share. This contrast to net income attributable to common investors of $6.740M, $0.350 per basic and diluted share, for the similar period of last year.

Financial Condition:

As of March 31, 2017, the Company had cash and cash equivalents of $23.670M, contrast to $22.010M as of June 30, 2016. Net cash used in operating activities was $1.380M for the 9- months finished March 31, 2017, contrast to net cash offered by operating activities of $10.090M for the similar period of last year. Net cash used in investing activities was negative $1.690M for the 9- months finished March 31, 2017, contrast to net cash offered by investing activities of $2.730M for the similar period of last year. Net cash offered by financing activities was $5.600M for the 9- months finished March 31, 2017, contrast to net cash used in financing activities of $0.520M for the similar period of last year.

Analyst recommendation for this stock stands at 3.00.