to meet Country's Bounding Demand -- With the Report Detailing Growth
Prospects and New Technology Outlook
Catalyst's Recommendation Forecasts Near Doubling of Revenues and Earnings
Momentum May Take EPS to $0.20: $2.50 Price Target for 2009
Catalyst Financial Resources, LLC has initiated coverage on NF Energy Savings, Corp. (OTC Bulletin Board: NFES | Quote | Chart | News | PowerRating) of Shenyang, China, a leading provider of energy efficient flow control systems and wind cogeneration equipment with a buy recommendation. Although small by U.S. operating standards, it is considered to be the third largest of China's firms contributing to the Country's burgeoning demand for electric power.
The urbanization of China's population is much like the U.S. during the 1890's through the 1950's, but the scope is many times larger. Approximately 25 million people in China are migrating off farms to the cities to gain better, higher-paying jobs. The magnitude of this booming consumer class is unprecedented in global history. As a comparison, in the US there are six cities with a population over five-million. In China there are 51 cities with populations exceeding five-million. Living standards are lagging overseas levels. Despite per capita income in China being $4,550 (roughly one-tenth the U.S. level), and residential energy consumption 4.0 million btu per capita (1/9th that of the US), the Chinese are becoming a prolific consumer class desiring western luxuries such as TVs, washers, cars, sewing machines, microwaves, etc. This consumption requires power, and there is a growing demand.
China is second only to the U.S. in electrical power generation. Yet, their Government believes they have to DOUBLE production between 2010 and 2020. That is the equivalent of duplicating every dam, nuclear power plant, coal plant, natural gas facility, windmill, etc. the US has over the next ten years. We estimate 150 years of US construction will be compressed into a decade. Growth for NFES and its competitors will continue to be taxed at ''technology company'' rates. This means substantial growth for a capital goods concern.
As such, Catalyst Research forecasts 2009 sales of $27.7 million and $.15 EPS. 2010 sales are forecast to be $40 million and $.25 EPS. The 2009 price target is $2.50 based on 12x 2010 estimates or 2.5x rev per share.
For the full report and important information regarding disclosures and rating systems, please visit: http://catalystresearch.biz/ResearchNFES.html
About Catalyst Financial Resources
Catalyst Financial Resources, LLC is an investor awareness firm helping small- and micro-cap companies gain credible exposure in the financial community. Employing the Catalyst System, we augment a firm's existing investor relations activities and assist in achieving appropriate valuation in the marketplace. The Catalyst System was born out of an intense commitment to the small-cap, under-followed market and the need to forge a new standard on Wall Street. Founded in 2002 by Marc Robins, CFA, Catalyst Financial Resources has a proven track record of meeting the needs of both the management and the shareholders of small-cap companies. For more information, please visit http://www.catalystresearch.com .
SOURCE Catalyst Financial Resources LLC; NF Energy Savings Corp.
http://www.catalystresearch.com

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