Man Sang Holdings, Inc.: Pearls of wisdom

Man Sang Holdings, Inc. (AMEX: MHJ)
Tsimshatsui Kowloon, Hong Kong
http://www.man-sang.com/

52-week low / high: $3.95 / $16.46
Shares Outstanding: 6.38 million
Market Capitalization: $60.5 million

If diamonds are a girl’s best friend then what are pearls? Well, for one, they’re a great investment, and Man Sang Holdings, Inc. (AMEX: MHJ) is a leader in the pearl business. 

From freshwater to Japanese cultured pearls, the small-cap wholesaler and processor of pearls, pearl jewelry products and other jewelry products offers pendants, bracelets and cufflinks to name a few. As a sign of the jeweler’s extensive penetration, Man Sang sells to over 930 wholesale customers in Europe, the United States and Asia.

But the real value stowed inside this pearl jeweler lies in the company’s real estate. The company earns a pretty penny from its real estate holdings in Shenzhen, People's Republic of China (PRC) and from its processing facility in the PRC and Hong Kong.

Man Sang owns land-use rights to approximately 470,000 square feet in the Gong Ming Zhen, Shenzhen special economic zone and the PRC, where it constructed an industrial complex (Man Sang Industrial City) with rights that run through 2041.

The company’s Man Sang Industrial City consists of 27 buildings, totaling approximately 813,000 square feet. 18 buildings are rental properties, while nine are used for the company’s pearl operations. Going forward, the company’s property development segment is expected to be a core business and contribute sustainable growth.

Revenues for 2007, ended March 31, 2007, were $51.35 million, up 5.28% from 2006. Earnings were a pretty $0.56 per share, up 58% from $0.35 in 2006. The company paid a cash dividend of $0.25 on Aug. 8, 2007. First quarter 2008 earnings were a robust $0.17 per share, an increase of 88% over the $0.09 earned in the first quarter of 2007, putting it on track for another banner year.

Note: Man Sang Holdings, Inc. (AMEX: MHJ) is on the “Watch List” of Rising Star Stocks, a subscription investment newsletter from Business Financial Publishing, which also publishes SmallCapInvestor.com. As a Watch List company, Man Sang Holdings displays many characteristics found in successful stock winners, and is being closely monitored for possible inclusion in the Rising Star Stocks portfolio at a later date.
    

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