Dragon International Group Corporation (drgg.ob)
Consumer Non-Durables
- Exploding Demand: China is already the world's largest consumer of paper and paperboard products, and annual consumption is growing substantially. In the United States, the world's largest consumer, consumption has risen at an average annual rate of 1.85% over the last 20 years. In contrast, consumption in China has risen at an average annual rate of 10.38% for the last two decades. There remains tremendous room for further growth, with per capita consumption in China still only 52.7% of the worldwide average, and a miniscule 8.6% of the U.S. average.
- Strong Revenue Growth: Dragon International Group's revenue has demonstrated the beneficial effects of the positive market conditions in the Chinese market. For the third quarter of the 2006 fiscal year, Dragon International's revenues were $4.7 million up from $2.5 million for the third quarter of 2005, a Year-Over-Year (yoy) increase of close to 90%. For the three quarters ending March 31, 2006, net revenues were $14.2 million, up from $8.8 million for the same period last year, a yoy surge of over 61%. The company is on pace to generate revenues of nearly $19 million for the 2006 fiscal year and is on track to exceed the company's projected revenue forecast of $27.6 million for 2007.
- New Market Opportunities: Dragon International is aggressively pursuing the burgeoning Chinese pharmaceutical packaging industry. This industry that is growing at a roughly 25% annual rate provides an excellent growth opportunity for Dragon International, and the company is considering acquiring a pharmaceutical packing company to augment its current capabilities. In addition to the company's organic growth, such an expansion has the potential to drive revenue and earnings growth upward substantially.
- Track Record of Success: Dragon International Group is in select company, occupying a spot among the top 5% of all companies listed on the OTC Bulletin Board in terms of revenues. This success appears likely to continue, with company projections of a 91% annual growth in revenues and a 175% annual earnings growth rate over the next two fiscal years. Considering that the company is on pace to exceed its own projections for the 2006 fiscal year, the outlook is positive for continued growth.
- Independent Validation: The successful initial progress achieved by Dragon International, the company's exceptional position in a growth industry, and Dragon International's participation in the rapidly expanding and largely unexploited Chinese market have already been recognized by market analysts. One independent analyst has given Dragon International a "Positive" rating, and another has given a "Speculative Strong Buy" rating and set a target price of $.60, roughly four times the current share price (For details of the research report, click HERE).
Company Contact Information
29 Dongdu Road, Bldg. 14
A09
Ningbo, , 315000
CHINA
- Phone:86-0574-5616-9308
- Fax:n/a
- E-mail:wuyi@nblongan.com
On-line contact form
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