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    Stock Alert for Sino-Global Shipping America Ltd. (SINO)

    Sino-Global Shipping America Ltd. (SINO) is a non-state-owned provider of high-quality shipping agency services. With local branches in most of China’s main ports and contractual arrangements in all those where it does not have branch offices, the Company is able to offer efficient, high-quality shipping agency services to shipping companies entering Chinese ports. With a subsidiary in Perth, Australia, where it has a contractual relationship with a local shipping agency, SINO provides complete shipping agent services to companies involved in trades between Chinese and Australian ports. The Company also operates a subsidiary in Hong Kong, China, to provide comprehensive shipping agent services to vessels going to and from one of the world’s busiest ports.

    Share Statistics (02-Nov-11) FY2010 FY2011 % Chg Q22010 Q22011 % Chg
    Symbol SINO Revenue, $Mn 26.84 32.94 22.7% 7.94 6.60 -16.9%
    Current price $2.85 Gross marg. 11.8% 10.1% -14.4% 9.7% 11.1% 14.4%
    52wk Range: $1.20-$9.16 Oper. margin -4.5% -9.8%
    Avg Vol (3m): 47,811 Net margin -2.0% -2.6% -23.1% -7.2% -6.8% -5.6%
    Market Cap. 8.27M
    Shares Outstanding 2.90M EPS, $ -0.16 -0.27 68.8% -0.19 -0.16 -15.8%

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    Shares of SINO traded higher a day after the Company announced it has entered into a memorandum of understanding with King & Sons. Shares jumped as much as 107%, with above-average volume of 777K shares traded. Over the last 52 week, the stock has reached a low of $1.20 and a high of $9.16.

    Shares of the China-based shipping agency service provider have gained 62.9% in the last five days; 37.4% in the last month; and 23.9% year-to-date.

    In a press release, the Company said it will appoint King & Sons as an agent to attend Sino-Global vessels in all applicable South Africa ports and King & Sons will recommend Sino-Global to act as its agent in China for the vessels loading in South Africa and discharging in China.

    “This MOU should benefit both companies by generating incremental revenues and profits,” commented Cao Lei, CEO of SINO.  “We are looking forward to a mutually rewarding long term business relationship with King & Sons and will seek to complete other such agreements at other major shipping ports in the future.”

    King & Sons, which claims to be one of the most established ships agencies in South Africa, offers its

    clients a full range of support in both technical and commercial port logistics. It boasts experience in handling vessels ranging from passenger liners, Bulk and Break Bulk vessels, Tug and Tow to specialized gas carriers. Dry Docking, Ship Repairs, Crew Changes, ship Bunkering and ship Cargo operation.

    Stephen Pike, new business development head of King & Sons, said the company expects to serve more ships from China and believe that SINO’s history of high-quality service and ability to provide shipping agency services to ships in China’s ports will add tremendous value to its existing offering of logistics, brokering and chartering services.

    Source: http://finance.yahoo.com/news/SinoGlobal-Announces-prnews-1207217871.html?x=0&.v=1

    Financial Summary

    SINO reported total revenues of $32.94 million for the fiscal year ended June 30, 2001, an increase of 22.7% from $26.84 million in 2010. The number of ships that the Company served increased by 17.6% from 358 in fiscal 2010 to 421 in fiscal 2011.

    The Company saw a net loss of $1.25 million for the fiscal year, compared to a net loss of $1.30 million in the year-ago period. After deduction of non-controlling interest in loss, net loss attributable to the Company was $863K, as against the net loss of $536K in the year-ago period. Basic and diluted loss per share, which is based on net loss attributable to SINO, was $0.30, compared to basic and diluted loss per share of $0.18 in the year-ago period.

    As of June 30, 2011, the Company had $4.9 million in cash and cash equivalents, compared to $5.9 million in the year-ago period.

    Source: http://ir.sino-global.com/phoenix.zhtml?c=221375&p=irol-newsArticle&ID=1610212&highlight=

    Financial Strength (02-Nov-2011)

    Company

    Industry

    Sector

    S&P 500

    Quick Ratio (MRQ) 0.25 1.26 0.60
    Current Ratio (MRQ) 2.06 0.27 1.59 0.93
    LT Debt to Equity (MRQ) 0.00 10.27 47.73 97.16
    Total Debt to Equity (MRQ) 0.00 11.40 72.14 136.77
    Interest Coverage (TTM) 0.00 0.30 20.30

    Source: Reuters.com, SEC Filings.

    Technical Analysis

     

    Source: http://stockcharts.com

    SINO is above the upper Bollinger Band, implying that it is currently extended from its recent trend. Be aware, however, that a cross outside of the Bollinger Bands can sometimes be a signal of trend strength and not, necessarily, trend reversal.

    SINO’s MACD is currently indicating a weak bullish signal. Although the MACD is trending above the signal line, the indicator is still below 0, which suggests that the underlying moving averages are bearish.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Nov03-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    UTi Worldwide Inc. UTIW 13.69 1.41B 16.30 13.04 0.28 0.26
    Hub Group Inc. HUBG 30.76 1.15B 18.99 15.38 0.42 0.37
    Air Delivery & Freight Services Median       17.35 n/a 0.52 n/a
    Sino-Global Shipping America Ltd. SINO 3.09 8.97M n/a n/a n/a n/a

    Source: Thomson Financial

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