HONG KONG, March 8 /PRNewswire-Asia/ -- Man Shing Agricultural (OTC Bulletin Board: MSAH), China's largest producer of ginger and related products, released its second quarter figures last month. The 10Q filing with the SEC shows continuing high net profits of over 20% and overall growth consistent with earlier projections. The company continues to increase profits and sales with quarter on quarter revenue growth of 12% and net profit margins of 22.5%. Earnings per share rose from $0.01 to $0.03.
On the back of increasing demand and supply shortages in other ginger producing regions, prices for ginger continue to rise - coming out of a 2008 low and still far below historical highs. Man Shing recently increased it's agricultural lease-holdings in China by 45%, an increase that will allow the company to further exploit its position as the leading ginger producer. The increase falls under a 2009 Chinese Government tax exemption incentive that encourages agricultural development, providing further support for Man Shing's continuing high margins.
The company's net income for the quarter remained strong and in line with expectations. The company, which is believed to be the world's largest ginger producer, also holds the largest inventory of the product in the world. This stock allows Man Shing to mitigate any crop yield risks and optimize returns in line with the upward price trend. Market demand is expected to continue to rise, with net profit margins being sustained at over 20 percent.
Man Shing CEO Eddie Cheung commented on the company's excellent start: "This is only our second quarterly report. We have solid expectations that the third and fourth quarters will also show satisfactory margins and growth. We are an energetic company and our performance this year is establishing an impressive track record that will generate more investor interest and confidence as we move into 2011/2012."
About Man Shing Agricultural
Man Shing Agricultural Holdings, Inc. (OTC Bulletin Board: MSAH) is headquartered in Hong Kong. Man Shing Inc. is a high growth agricultural products company based in Shandong Province, China. The main product is ginger. Man Shing exports to high-margin, high-quality markets where its products are sold in leading supermarkets and restaurants in Europe, Japan and North America. Man Shing expects to sustain gross profit margins of over 25% and net profit margins of around 20% on low production costs, efficient land management and a high-quality, high-margin strategy. Having acquired long-term rights to extensive tracts of farmland in Shandong, the Company is positioned to become the largest ginger producer in the country by the end of 2010. Please visit http://www.msaginger.com .
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