RINO International Corp. (RINO) has more than doubled in the last 2 months, fueled by strong demand for the company’s products and services as China turns its attention to pollution control.

Company Description

RINO International Corp. designs, manufactures and services industrial pollution control systems for the iron ore and steel industries in China. The company was founded in 2003 and has a market $238 million.

China continues to gain status in the global economic hierarchy, but the country has been plagued by concern over its environmental policies. RINO’s pollution control systems play into this dynamic, with its sales growing by leaps and bounds, evidenced by strong first-quarter results, reported on May 16.

First-Quarter Results

Sales were up 87% from last year to $35.6 million. Earnings came in at 50 cents, 11 cents ahead of the one covering analysts estimate.

RINO said that its strong results were driven by sales growth across its three major product lines, indicating revenue diversity.

The company also noted that its balance sheet strengthened considerably, with cash and equivalents up 142% from last year to $47.9 million. Cash flow from operations increased to $27.6 million, up from $3.6 million, primarily due to income expansion.

CEO Talk

President and CEO Zou Dejun noted that the company’s growth is tied into the country’s goal to protect its natural resources, saying that, “Our business continues to be driven by a number of fundamental factors all centered around China’s desire to ensure that iron and steel manufacturers properly protect the environment, specifically the water and air.”

Estimates Up

In conjunction with the solid quarter, estimates have been on the rise, with the current year adding 13 cents in the last 60 days to $1.80 per share. The next-year estimate is bullish, pegged at $2.14, a 19% growth projection.

The Chart

Shares of RINO have been on a big rally since early May, more than doubling in price after bottoming out just above $3 and recently topping off above $10. Take a look at the nice run below.

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