China Advanced Construction Materials Group Inc. (CADC), a provider of ready-mix concrete in China is scheduled to make a presentation at the Rodman & Renshaw Annual China Investment Conference in Beijing, China on March 9.
The company has been receiving a steady flow of projects, thanks to its environmentally friendly concrete products. Due to the government's initiative and support to grow a low-carbon economy, China Advanced's 'Green' concrete products are expected to have sustainable growth, especially for government-sponsored projects.
China Advanced takes pride in having delivered two consecutive record quarters in fiscal 2010.
In the first quarter of fiscal 2010, adjusted net income available to common shareholders increased 110% on nearly a four-fold rise in revenue. In the second-quarter, adjusted net income available to common shareholders increased 83% on more than a two-fold revenue growth.
In less than three months, the company has received two railway projects. Following the Chinese government's mandate to add 41,000 kilometers of railway track by the year 2020, China Advanced has been focusing on the railway infrastructure construction area.
On March 2, the company was awarded a new contract totaling $1.55 million for its ready-mix concrete services for one section of the PanJin to YingKou high-speed railway in Liaoning Province. According to the company, the project will require 200,000 cubic meters of concrete and should be completed in less than two years.
On January 25, the company signed a definitive contract to provide its ready-mix concrete service to the high-speed railway project between Xi'an and Ankang, the largest city in southern Shanxi Province. The project, whose duration is estimated to be 20 months, is expected to bring in net income of $800,000 and revenues of $3 million.
The company sees the high-speed railway expansion, which enables the Chinese government's plan to build infrastructure in the interior of China, as a $15 billion addressable market for concrete mixing services alone.
China Advanced Construction moved from the OTC Bulletin Board and began trading on the NASDAQ only as recently as November 2, 2009.
CADC is up 11.7% trading at $5.25 on a volume of 265 thousand shares.
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