China Agri-Business (CHBU) is likely to profit from the fertilizer business. China Agri-Business manufactures and markets more than 50 organic biochemical agricultural application products, including non-toxic fertilizers, bactericides, and fungicides, that are used in farming. Crops grown with the Company's products are eligible to qualify for the "AA Green Food" rating in China.
The company expects to reach their year 2010 target of 500 direct sales stores early, by the end of October 2010.
"In our stores, farmers can learn about all the products in our stores from our knowledgeable sales staff. The staff also provides technical assistance to help farmers make the smartest decisions about the best products to use to benefit their product quality and yields in the current growing season, and also to help them keep their soil healthy for sustained successful growing in the years ahead. Of course, in our stores they can purchase fertilizer products, including our own organic fertilizers and complementary products manufactured by other companies. We also help them with access to information that is helpful for successful farming, for before, during, and after the growing seasons. Our products and information cover most of the crops that are grown in our market regions. We also assist with after sales service.
Strong Business Model
"Our direct sales stores are one part of our new business model that consists of several resources and actions. First is sourcing of raw materials to make our non-toxic and organic products that help farmers increase crop yields and productivity. Second is flexible manufacturing that includes our own production and expansions, plus capacity at plants where we can hire the production to be done as needed. Third is marketing, distribution, and sales, which is where our rapid expansion of our direct sales stores is very important. Fourth is to continue to seek more innovative and more effective products so we are increasingly helpful to the farmers as they grow food for the nation and grow a good profit for themselves. Fifth, of course, is to earn an attractive return on investment for the company and its shareholders, and to continue to reinvest for future growth through geographic market expansion and new and improved products, processes, technologies, and production. And sixth, which is most important, is that we view our relationship with the farmers, as a long-term mutually beneficial partnership to be sustained across many years; they are colleagues and friends, not just customers.
"So, as we are strengthening our connection with farmers, to increase their yields and productivity, we also expect to benefit from higher sales, higher market share, and gradually improving returns on investment in the years to come. We believe our broad offering of products, services, and close involvement and assistance with our farming friends should encourage them to be loyal long-term customers for China Agri.
"With our new business model and related long-term growth programs, we believe our actions will create long-term value for our shareholders. We are very pleased with our results for the first half of 2010."
This Micro Cap is going to be huge and I am confident that we see higher stock prices along the way. The recent price of $0.69 doesn't reflect their 3-S and financial metrics.