After spending the past year at nothing better than a four-star rank, Yongye International
The agriculture sector in China is hot, and CAPS members like Yongye's growing position in the burgeoning market. Business has flourished: The company followed up on a solid doubling of revenue in the first quarter by reporting preliminary second-quarter revenue growth of 93.5% over last year. Yongye also raised its full-year guidance, expecting strong demand to continue.
Similar trends in rural growth have helped other Chinese agriculture players and boosted investor confidence in Yongye. Hog-feed maker AgFeed Industries
Investors also like Yongye's expansion plans: The company is growing its footprint and is confident that more Chinese farmers will adopt its plant and animal nutrient products. It has been boosting the number of independently owned branded stores and pushing further into more regions in the country. With a new plant coming online in September and a 50% capacity expansion at its existing plant-nutrient production facility, Yongye will dramatically boost its capacity for new revenue. Investors are seeing the same story play out with other companies -- for instance, pork processing company Zhongpin
Do you think Yongye International deserves its improved status? Add your thoughts in the comments box below, or head over to CAPS to rate the company.