Natural Health Trends Leads in the Consumer Goods Sector

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Aug 19, 2015

Natural Health Trends Corporation (NHTC, Financial) recently reported a triple-digit return for the one-year period. The consumer goods company has a 52-week return of 144.03% through Aug. 18. The company is an established leader in consumer goods and consumer goods distribution internationally. It currently sells dietary supplements, cosmetics and personal care products across all regions of the world.

Its recent July 28 earnings report revealed the company’s high demand for its consumer products in Hong Kong which has been fueling its recent revenue growth. For the second quarter it reported $69.7 billion in revenue up 104% from the comparable quarter. Earnings per share for the quarter were $0.98, up 100% from the comparable quarter. Results for the first half of the year also showed a similar trend. Revenue was up 93% to $110.4 billion and earnings per share increased 100% to $1.52.

In the second quarter the company’s earnings results showed 93% of its revenue generated in Hong Kong at $64.78 million. Revenue in Hong Kong was up 105% from the comparable quarter and 96% for the first half of the year. The company’s net earnings margin overall for the business also remained at a steady 18% from the comparable quarter showing its ability to manage the expenses associated with international product distribution.

Consumer product sales for the company were also considerably higher in South Korea, China and North America. In South Korea revenue was 3.5 times higher than the comparable quarter at $516 million. In China revenue grew significantly from the comparable quarter and in the first half of the year. Revenue growth in China was up 275% from the second quarter of 2014 and 210% from the first half of 2014. In North America revenue grew 221% from the comparable quarter and showed an increase of 173% for the first half of the year.

Following the company’s July 28 earnings report the market reacted favorably increasing the price of the stock 39.08% to close at $34.38 on July 29. Year to date through August 18 the stock is up 153.62%.

Jim Simons (Trades, Portfolio) of Renaissance Technologies LLC is one investment manager who has bought into the stock recently. In the first quarter he added the stock to his portfolio buying 95,200 shares. In the second quarter Simons added to his stake in the company buying 200,200 shares. The second quarter trade increased his portfolio position in the stock to 0.03% with a value of $12.3 million. Overall, Natural Health Trends Corporation’s management has reported it expects the company’s demand to remain high and revenue momentum to continue at its current pace. Therefore, investors are likely to see continued demand for its products internationally with continued value gains in its stock price.