DRGG – Dragon International Group Corp.
Stock Guru Profile DRGG Equity Stock Analysis Report on Dragon International
Equity Stock Analysis addressed the tremendous importance of the growth of the pharmaceutical industry for Dragon International. We will recap some of this for you in light of Dragon’s recent announcement regarding a new purchase order for pharmaceutical packaging in northeast China. Dragon International has established itself in the pharmaceutical packaging market in India and is gaining an equally strong foothold in its own country of China. Since the Boxer Rebellion businessmen have been dreaming of doing business in China — what was underestimated was China’s own ability to provide for itself. No More!Dragon International Group Corp. through Shanghai JinKui Packaging Material Company, Limited (”JinKui”), received a purchase order from Wutai Pharmaceutical Group (”Wutai”). JinKui will supply 8-10 metric tons of cold aluminum packaging film per month over the next two years for pharmaceutical packaging. Success breed success and that is precisely what Dragon International is doing. Wutai is a manufacturer and distributor of pharmaceutical products in the northeast section of China. This order will allow JinKui to expand the reach of its products into the northeast section of China. JinKui forecasts the purchase order could generate up to $3 million in total sales by December 2007.
Dragon has the sales force in place — the patents and the ability to supply modern, cutting edge packaging to an industry that is growing at phenomenal rates in China AND India – pharmaceutical packaging.
Review of the Scope and Potential of Pharmaceutical Packaging for Dragon
Shanghai Jinkui Packaging (a Dragon subsidiary) projected the following:
• $8MM to $10MM in projected sales;
• $2MM in net income in next 12 to 24 months
• Pharmaceutical packing market increases 35% to 40% annually
• $6MM in projected sales for 2007
Blister Packaging and Patent Technology
Shanghai Jinkui Packaging produces the high quality packaging the international pharmaceutical community demands including blister packaging and plastic bottles. Pharmaceutical packaging must remain hygienic, and be resistant to both extremes of temperature and moisture.
Shanghai Jinkui Packaging has the ability to produce packaging which is of the highest quality necessary for the pharmaceutical industry through the use of a patented nanotechnology process.
Word Pharmaceutical Packaging on a Tear and China at the Epicenter of this Growth
World pharmaceutical packaging demand is projected to increase 6.3 percent annually to more than $30 billion in 2009. World pharmaceutical packaging demand will increase 4.3 percent annually including price increases to $22.2 billion in 2007.
Nearly 80 percent of demand will be attributable to the eight largest drug-producing countries: the U.S., Japan, China, Germany, France, the United Kingdom, Italy and Switzerland. Among these countries, China will generate the fastest growth. This fastest growth is based on China’s rapidly expanding pharmaceutical manufacturing capabilities and the phasing-in of an extensive government program designed to upgrade the quality of nationally produced machines.
Blister packaging will generate the best worldwide growth among all pharmaceutical packaging products, with demand increasing 6.6 percent annually to $4.9 billion in 2007. Broad adaptability to unit dose, clinical trial, compliance, institutional, over-thecounter, and sterile drugs will account for these gains.
As China’s pharmaceutical industry expands its standards, its reputation abroad is enhanced. The packaging to support this
industry must be of a higher standard than that traditionally produced in China, bringing the domestic industry up to global
standards. Shanghai Jinkui Packaging currently has that ability together with plans and facilities to ramp up these sales as
product demand grows.
Dragon International is executing on its promise. This once regional company has target not only national growth but international growth in the most dynamic growth areas both geographically and industry-wise:
India and China and Pharmaceutical Packaging.
Stay tuned as we look at the dynamics working here for a focused and dynamic expansion story.
Contact:
Andrew Brown
ROI Group Associates, Inc.
Tel: 212-495-0202
Email: abrown@roiny.com
DRGG – Dragon International Group Corp.
Bldg 14, Suite A09
29 Dongdu Road
International Trading Center
Ningbo, 315000 ChinaWebsite: http://www.drgg.net
Phone: 86-574-56169308
Fax: 86-0574-56169378 SOURCE: Dragon International Group Corp. About Dragon International Group Corp. Dragon International Group Corp. (OTCBB: DRGG) is one of China’s leading manufacturers and distributors of specialty paper products and packaging materials. DRGG is operating as a manufacturer and distributor of paper and integrated packaging paper products. DRGG has a distribution network covering east and central China. Dragon and its subsidiaries have cultivated strategic relationships with several of the world’s largest and well-known manufacturers of paper and specialty packaging products. For more information, please visit http://www.drgg.net.
SafeHarborand Forward Looking Statement: Certain statements set forth in this article constitute “forward-looking statements.” Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company’s actual results and financial position to differ materially from those included within the forward-looking statements, including the Company’s ability to obtain sufficient financing to fund both its internal growth opportunities and acquisition strategy. More information about the potential risks and factors that could affect the Company’s business and financial results is included in the Company’s filings, available via the United States Securities and Exchange Commission at http://www.sec.gov/.
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