SHANGHAI - Nisun International Enterprise Development Group Co., Ltd. (NASDAQ: NISN), a provider of integrated supply chain solutions, has entered into a strategic cooperation agreement with Henan Yingda Feng Agricultural Development Co., Ltd. for the annual supply of 200,000 tons of corn products. The deal, valued at approximately RMB 600 million (around $82 million USD), represents a significant expansion of Nisun International's operations into the agricultural supply chain. The company, which InvestingPro analysis shows is currently undervalued, has demonstrated strong revenue growth of 86% in the last twelve months, with a healthy current ratio of 4.22.
This move is a continuation of Nisun International's strategy to diversify its business portfolio and reinforce its standing as a prominent supply chain solutions provider. The company has previously made strides in the rubber supply chain industry and is now applying its advanced capabilities to the agricultural sector, with a focus on efficiency and innovation. Trading at a P/E ratio of just 1.93, the company maintains a strong financial position with more cash than debt on its balance sheet, according to InvestingPro data (subscribers can access 12 additional ProTips and detailed financial metrics).
The agreement emphasizes Nisun International's growth in agricultural supply chains and underscores the importance of its services in Henan Province, a key agricultural area in China. The collaboration with Henan Yingda Feng highlights the recognition of Nisun International's supply chain competencies by significant agricultural players in the region. This expansion comes as the company's stock has shown remarkable momentum, with a year-to-date return of 109.25%.
Xin Liu, CEO of Nisun International, stated the agreement showcases the company's commitment to delivering value in essential industries and supports the development of China's agricultural supply chain ecosystem.
Nisun International, with its experience in corporate finance transformation, offers professional supply chain solutions to businesses and financial institutions both in China and internationally. The company continues to integrate industrial and financial services, aiming to serve various segments of the industrial supply chain and aid in supply-side sub-sector reform.
Information for this article is based on a recent press release statement from Nisun International.
In other recent news, Nisun International Enterprise Development Group Co., Ltd reported a remarkable 52% surge in revenue for the first half of 2024, expecting to report approximately $192.5 million, with earnings per share projected to be around $2.61. In a significant move, the company has acquired a minority stake in Nanjing Pin Bai Sheng Catering Management Co., Ltd., a major KFC franchisee in China, as part of its strategy to expand its presence in the Chinese supply chain and the growing campus catering market. Nisun International also announced strategic partnerships marking its entry into the rubber supply chain market with initial orders worth about $13.5 million.
The company has ventured into the traditional Chinese medicine supply chain through a strategic cooperation agreement and has launched a share repurchase program with the authorization to buy back up to $15 million of its outstanding Class A common shares over the next 12 months. The company's gold trading business has achieved a significant milestone, generating approximately $240 million in cumulative revenue, while its principal shareholder, Mr. Bodang Liu, has increased his stake from 19.36% to 21.92%, acquiring an additional 102,700 shares. Lastly, Nisun International has secured a procurement deal for over 50,000 tons of corn, marking a substantial expansion of its grain business. These are recent developments for Nisun International Enterprise Development Group Co., Ltd.
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