Worldwide Manufacturing USA has been established for fourteen years and is focused on engineering, contract manufacturing, and direct manufacturing. Its customers are US-based companies primarily in the aerospace, automotive, wireless telecommunications, medical equipment, instrumentation and home electrical industries.
In 2005, the company began focusing on growth through acquisitions to achieve higher profit margins and gain complete control over the manufacturing business from sales, to engineering, production, delivery and customer service. Worldwide Manufacturing is committed to acquiring at least one factory each year for one product line, acquiring profitable factories that manufacture brand name or patented products in rapidly growing industries, and achieving annual sales of $50 million.
Redchip expects Worldwide Manufacturing to achieve significant revenue growth over the next two years with sales climbing from $11.41 million in FY 2006 to $14.25 million in FY 2007, $28 million in FY 2008 and $40 million in FY 2009. The research firm has factored projections revenues from two acquisitions of approximately $4 million each in 2007 and 2008. Redchip anticipates net income to grow from $0.97 million in FY 2006 to $1.21 million in FY 2007, to $2.15 million in FY 2008 and to reach $2.50 million in FY 2009.
In conclusion of the report, Rechip stated, “We believe that the Company will achieve significant top-line growth over the next two years and generate fully diluted EPS of $0.60 in FY 2009. We calculate a 12-month price target of $15.00 for WWMU and a PV of $12.50 as its fair price in September 2007. We think that, at a recent price in the range of $5.00 to $6.00 a share, provides a buying opportunity for value-oriented investors.
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