Over the weekend Seeking Alpha picked up coverage of WUHN by publishing an article titled:
WUHN Wuhan General Group: A Focused Pure Play Industrial Blowers And Steam And Water Turbines Company With Huge Potential To Grow
Many of you may not know, but Seeking Alpha is followed by one of the largest base of investors from all over the world!
Ever since we issued our alert last night WUHN has gone viral in the investor community as thousands of people on Twitter, Facebook, message boards, & trader chat rooms started talking about just how undervalued WUHN is. Even a popular short selling website mentioned how unbelievable it is to see WUHN trading at such a low current valuation when the companies book value is $3.55!
If you missed our full report on WUHN last night you can review it below.
WUHN - Wuhan General (China) Group Inc.
Last Price: $0.0395
Shares Outstanding: 32,505,000
Market Cap: $1.28 Million
Website: http://www.wuhangeneral.com/
Wuhan General Group (China), Inc. engages in the design, development, manufacture, and sale of industrial blowers for steam-driven electrical power generation plants in the People’s Republic of China.
WUHN also produces steam and water turbines consisting of regular steam turbines and co-generation steam turbines for use in electrical and hydropower plants. In addition, it manufactures blower silencers, connectors, and other general spare parts for blowers and electrical equipment. Wuhan General primarily markets its products to steel companies, power plants, chemical companies, paper mills, and hydroelectric power plants.
Products
WUHN's blowers are widely used in a variety of applications such as electricity generation, air pollution control, ventilation, aeration and sewage treatment.
Axial fans – Axial fan blowers consist of a bladed impeller in an elongated cylindrical casing and are primarily used to provide high-volume, low-pressure air for larger power stations of 200 to 1,000 megawatts.
Centrifugal blowers – Centrifugal blowers consist of a “squirrel cage” type of impeller (or rotor) in a scroll- or spiral-shape casing. This type of blower provides a lower volume of air, but at higher pressures, and is used in medium-sized power stations of 100 to 300 megawatts for blowing coal dust into furnaces. They are also mainly used for aeration in sewage treatment plants.
Exhaust silencers – Produces silencers or “mufflers” fitted to the exhaust side of our centrifugal blowers. These silencers are very similar in form and function to the muffler on an automobile.
R & D Capabilities
Wuhan General has passed comprehensive quality control checks including ISO 9001:2000, ISO14001:1996 and OHSAS18001:1999.
Currently, Wuhan General is one of the blower and turbine manufacturers in China to have an acoustics lab, which it shares with university partners and China Fan Performance Test Centre.
WUHN has extensive and solid relationships with the Science and Technology University of Central China, Jiaotong University and the Acoustic Institute of China Science Academy. This enables the Company to stay abreast of the latest developments in the fields of fluid dynamics, material sciences and acoustics.
3D Printing Development & Design for Manufacturing Technology
The Company makes extensive use of computer aided design (CAD) and computer aided engineering (CAE) in the power generation equipment manufacturing. While CAE enables the Company to do finite element analysis of rotor designs, CDA allows WUHN to do 3-D modelling and design of the inlet and outlet parameters.
WUHN also has a close relationship with Beijing 3-D, a high tech enterprise co-sponsored by the Chinese Academy of Sciences for the purpose of developing new designs and manufacturing technology for the power generation equipment manufacturing industry in China. Beijing 3-D has developed world-class 3-dimensional CAD tools for use in the design of steam and water turbines.
Computer aided design (CAD) & computer aided engineering (CAE) are more commonly referred to as 3D printing, a process of making three dimensional solid objects from a digital model. 3D printing is achieved using additive processes, where an object is created by laying down successive layers of material. 3D printing is considered distinct from traditional machining techniques (subtractive processes) which mostly rely on the removal of material by methods such as cutting and drilling. 3D printing is usually performed by a materials printer using digital technology. Since the start of the twenty-first century there has been a large growth in the sales of these machines, and their price has dropped substantially.
WUHN's Mission & Strategy
WUHN aims to be one of the leading players in the production of industrial blowers and turbines in China. With their strong capability in design, R&D and stringent quality control, WUHN feels well positioned to take advantage of China's rapid infrastructure growth. In executing their growth strategy, WUHN intends to focus on the following points:
Continue to grow its market share in existing businesses: Demand for WUHN products is driven by the expansion of three critical and sustainable economic growth areas in the Chinese economy: electricity generation, environmental protection, and infrastructure. For the future, while the Company will identify opportunity to enter new markets, Wuhan General aims to continue to grow its market share in both industrial blowers and turbines businesses.
Focus on fastest growing sectors: In the past years, rapid economic growth has also led to very high levels of air pollution. To tackle this problem, the Chinese government launched regulations to require large power and industrial facilities to install advanced air pollution control systems, providing tremendous opportunities for Wuhan General. In addition, China's small to medium size turbine sector, driven largely by the cogeneration market, is projected to grow at many times the rate of the large turbine sector.
Leverage strong brand equity and precision technology: As a state-owned enterprise founded in 1958, Wuhan General was already a well-known name and leading player in China's industrial blower market prior to privatization. As a private company and now as a publicly listed company, Wuhan General continues to be widely recognized in China for its attention to quality and unique design features. The Company will leverage its brand equity as it continues to grow.
Continue to cooperate with leading academic agencies and institutions in R&D: WUHN believes their R&D facilities are among the most advanced in the industry. As one of their most important growth strategies, their management team will continue to focus on investment in R&D and work closely with various leading academic and universities such as Beijing 3-D.
Unlike most penny stocks WUHN is NOT a start up. WUHN was founded in 1958 as a Chinese State-Owned Enterprise which has since gone public & now employs over 800 people full time. The company has assets worth nearly 300x it's current market cap!
WUHN trading at a price of $0.0395 has a market cap of only $1.28 million.
Remember that number while you review the companies fundamentals as reported on their most recent 10Q filed with the SEC on November 19, 2012.
So Lets Get To These Numbers!
Full Time Employees: Over 800
Revenue Nine Months Ended September 31, 2012: $67.8 Million
Gross Profit Nine Months Ended September 31, 2012: $11.3 Million
Operating Income Nine Months Ended September 31, 2012: $4.1 Million
Total Assets: $311.2 Million
Total Liabilities: $195.8 Million
Total Stock Holders Equity: $115.4 Million
Cash Balance: $40.3 Million
With just over 32.5 million shares outstanding this company currently has nearly $1.24 per share in cash on hand yet trades for just under $0.05!
Do those numbers above sound like fundamentals of a company being valued at only $1.28 million by Wall Street to you!?
Talk about Wall Street getting it all wrong again!
If you missed our last +6,122% winner make sure you put WUHN front & center on your trading monitors immediately because this hot 3D Printing Play with tremendous fundamentals will surely see an explosive move starting at the opening bell! |
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