It's been a big week for Chinese companies reporting second-quarter earnings. In the past week, more China Strategy recommendations announced blowout quarters, including two companies that we discussed last week.
For weeks, I've been telling you that China's leading online travel company would post better-than-expected second-quarter results, and sure enough, last Tuesday, the company beat analysts' projections. It noted that its per-share profits jumped from 25 cents to 33 cents, a 32% increase. Analysts were only looking for 29 cents.
In addition, the company stated that sales increased 28% to $70 million, nicely above the $64.5 million projections. The rise in air ticketing revenues and hotel reservation revenue, up 32% and 16% respectively, contributed to the boost in the company's sales this quarter.
What's even better is that the company is on track to grow around 25% in the third quarter. And many analysts are expecting the company to greatly benefit from the 2010 Shanghai World's Fair, which could bring 70 million people to the event, increasing the need for hotel reservations in Shanghai and the surrounding area. You can bet that this online travel company will be first in line to meet this need!
That means that China's number-one online travel company still has plenty of room to grow -- and that equals incredible profits for China investors. Shares are already up 114% year to date, but as I said, this is just the beginning. Don't miss out on the next double -- or more -- in China's leading travel company! Join China Strategy today!
And then on Monday, China's leading online gaming company reported a whopping 60% increase in second-quarter profits and an incredible 56% jump in revenues. Talk about an incredible quarter!
As we discussed last week, the company is benefiting from China's strong online gaming industry -- it's actually one of the hottest sectors in China today. And the company attributed its strong performance to the success of its online games, specifically the recent launch of a new game.
Because of the popularity of the company's online games, management noted that the number of active paying customers jumped from 1.5 million to 1.9 million, and on average, revenues from an active paying customer rose more than 25%.
And like China's leading travel company, the country's number-one online gaming company is expecting its incredible results to carry over to the third quarter. Management is looking for third-quarter revenue to increase between 43% and 47% year over year. That means there are more profits on the way…
Shares jumped 5% on the news, and are now trading back around its 52-week high. And year to date, the company is up 117%. Start preparing for the next round of profits today -- join China Strategy.
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