SOURCE: Skystar Bio-Pharmaceutical Company

February 08, 2007 13:00 ET

Ludlow China Fund Initiates Research Coverage on Skystar Bio-Pharmaceutical With a $2.50 Price Target

NEW YORK, NY -- (MARKET WIRE) -- February 8, 2007 -- New York-based Ludlow China Fund initiates research coverage on Skystar Bio-Pharmaceutical (OTCBB: SKBI), a leading bio-pharmaceutical company in China, with a price valuation target of $2.50 per share.

Some of the key metrics used to reach this price target include:

RECENT EARNINGS

For the nine months ending September 30, 2006, the Company reported total revenues of $7.32 million, compared to $4.53 million for the same period in 2005. Net income for the nine months ending September 30, 2006 was $1.44 million, or $0.14 per fully diluted shares, as compared to $0.12 per fully diluted share for the same period in 2005.

As of September 30, 2006, the company reported a total of 12,606,199 shares issued and outstanding.

GUIDANCE FOR FISCAL YEAR 2006

For the fourth quarter of 2006, the Company projects revenue between $1.80 million and $2.00 million. This would be an increase of between 28% and 42% over the $1.41 million in sales reported for the fourth quarter of 2005. For the full year 2006, Skystar estimates revenue of $9.12 million to $9.32 million, an increase of 54% to 57% over the $5.94 million recorded for all of 2005.

NEW GMP STANDARD MANUFACTURING FACILITY

In 2003, Skystar received approval from the State Council of China to expand its production facilities and construct a new Good Manufacturing Practice ("GMP") standard plant. Skystar has been accredited as a high-tech enterprise, and the Company's expansion project has gained full support of both Shanxi provincial government and Xi'an municipal government. The new plant had an approximate cost of US$12 million and occupies an area of approximately 117 acres with a total area of about 126,900 square feet. With the completion of its new facilities, Skystar has started to drastically increase its production capacity to meet the overwhelming demand for its products. This increased demand, partially caused by many competitors being forced out of the industry due to the stringent new GMP Certification Standards passed by the PRC, coupled with the completion of its new GMP Certified facilities allows for robust growth for the company.

A full version of our research coverage and risk factors on Skystar Bio-Pharmaceutical can be found at -- http://www.theasianinvestor.com/reports/skbi.htm.

If you would like to be added to Skystar Bio-Pharmaceutical's investor email list please contact Zack Noory with Nexus Investor Relations at znoory@nexusir.com.

About Ludlow China Fund

Based in New York City, the Ludlow China Fund aims to provide individual and institutional investors with a means to invest in the emerging China market through our diversified fund and index. The Ludlow China Fund owns and operates the Ludlow China Indices, which tracks a wide basket of US traded large and small cap Chinese stocks. For more information, please visit http://www.ludlowcapital.com/funds/china.html.

About Skystar Bio-Pharmaceutical

Skystar Bio-Pharmaceutical Company is a China based producer and distributor of vaccines, microorganisms and 100% organic herbal additives to cure and prevent disease in poultry, livestock, birds and pets. The company's product line consists of more than 70 state-of-the-art products with over 50 additional products in the developmental stage. One of the prominent products currently in the development stage is a feed additive and vaccine for Avian Influenza. Skystar has formed strategic sales distribution networks in 27 provinces and regions throughout China. Skystar recently completed construction of new state-of-the-art Bio-Pharmaceutical facilities covering an area of almost eight acres. The new facilities meet or exceed all Good Manufacturing Practice (GMP) Certification Standards and have received GMP Certification from the Chinese government. For additional information, please visit www.skystarbio-pharmaceutical.com.

Forward-looking statement: Except for the historical information, the matters discussed in this news release may contain forward-looking statements, including, but not limited to, factors relating to future sales. These forward-looking statements may involve a number of risks and uncertainties. Actual results may vary significantly based on a number of factors, including, but not limited to, uncertainties in product demand, the impact of competitive products and pricing, changing economic conditions around the world, release and sales of new products and other risk factors detailed in the company's most recent annual report and other filings with the Securities and Exchange Commission.

Contact Information

  • AT SKYSTAR BIO-PHARMACEUTICAL:
    Scott Cramer
    Director - Investor Relations
    407-645-4433
    Email Contact

    AT NEXUS INVESTOR RELATIONS:
    Zack Noory
    Managing Partner
    310-606-2018
    Email Contact

    AT LUDLOW CHINA FUND:
    Gerry Salazar
    President
    718-855-8451