Hanwei Energy Services Corp. (TSX:HE), one of China's largest manufacturers of fibreglass-reinforced plastic pipes for the oil and gas sector, is forecasting even stronger growth of more than 70% this year after a record-breaking 2007.
On Friday, the Vancouver-headquartered company, which has also made significant headway last year into the wind power equipment business, reported 2007 sales revenue of $40.8 million, a 72% increase over its 2006 total.
Whereas all of Hanwei's 2006 revenue was from the high-pressure fibreglass reinforced plastic (FRP) oil pipe business, wind power equipment accounted for 21% of revenue in 2007, and 3% from FRP flu-gas desulphurization pollution control products for coal-fired power plants.
Revenue for the fourth-quarter ended December 31, 2007, grew by 146% to $24 million, compared with the same period in 2006.
Hanwei, which was founded by Fulai Lang, a businessman who splits his time between mainland China and Vancouver, reported net income of $6.3 million in 2007, an increase of 36% from 2006.
Since going public in December 2006 on the TSX Venture Exchange, the company has raised new equity of approximately $77 million, although it said it would require a further $130 million for its growth plan this year.
Hanwei plans to continue expanding in the Chinese and Kazakhstan markets. It hopes to enter other international markets, including Russia, where it recently established a marketing subsidiary.
Hanwei is also looking to buy China-based Daqing Deta Electric Co. Ltd. for $85.3 million to expand its wind power business.
By press time, Hanwei shares were trading as high as $4.92. Its 52-week high: $7.45; 52-week low: $2.70.