Investors accustomed to deviations between environmental conservation activism and cash profits will be pleased to find this stock which is green and profitable at the same time. The company has consistently crossed 25% for its net profit margin and for returns on equity as well, during the recent past. It is involved in the distribution and logistics of natural gas. The company is registered in Delaware, but operates in a growing and major part of mainland China. This stock is clearly an engaging confluence of growth, profits, and sustainability.
The company has a stable base of industrial, commercial, and individual customers. It supplies natural gas to third party filling stations, has an exclusive license for residential supplies in a populous urban setting, and also owns outlets for automobiles with hybrid engines. These multiple lines of revenue leverage its key asset of a 100-mile pipeline from a major China natural gas reserve. Xian and the surrounding parts of Lantian County are key growth centers in the Shaanxi province of The Peoples’ Republic of China.
The best is yet to come for this company, because it is about to enter the value-added and related field of Liquid Natural Gas (LNG). This horizontal diversification will clearly convey new stock value. The new business is anticipated to start yielding revenues during 2008. The company also secured a sizeable LNG supply contract from PetroChina, which is particularly significant as the LNG business has exceptional operating margins.
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