Measured Approach

Data as of

: 01/15/2010

Industry: Jewelry & Silverware

Current Data

Current Price$20.73PEG0.2Market Cap ($M)$572.7EPS TTM ($)$2.09Shares Outstanding (M)24.9P/E TTM9.9XInstitutional Holdings %46.0%EPS Estimated 2009 ($)$2.23Insider Holdings %43.0%P/Estimated EPS9.3XBetaNA

MA Value ($)$24.50

Latest Quarter Reported09/30/2009Dividend Yield %$0.00

The “Middle Kingdom”, China, is undergoing another, unspokenrevolution. There is small, yet growing middle class that is demandingmore consumer goods. As China’s economy continues to grow, thispopulation longs for luxury goods.Fuqi International, Inc. (FUQI)is a designer of precious metal jewelry inChina, developing, promoting, and selling a range of products in theChinese luxury goods market. The Company’s products consist of arange of styles and designs made from gold and other precious metals,such as platinum and Karat gold. FUQI also produces jewelry items thatcontain diamonds and other precious stones on a custom-order basis.Its design database contains over 30,000 products. The Companyoperates through wholly owned subsidiary Fuqi International HoldingsCo., Ltd. As its wholly owned subsidiary Shenzhen Fuqi Jewelry Co. Ltd. The Company has about 70 jewelry retail outlets and stores in China.“Fuqi International, Inc. raised its fiscal 2009 outlook and expectsrevenue of approximately $519.4-$528.4 million. These estimatesinclude both wholesale and retail revenues and exclude the impactfrom any potential acquisitions and net income of approximately$53.5-$54.9 million, or diluted earnings per share (EPS) of $2.21-$2.27.For fourth quarter of 2009, it expects total revenue betweenapproximately $182.0-$191.0 million, which includes wholesale andretail revenues and net income to be in the range of $15.2-$16.6million, or $0.55-$0.60 per diluted share. According to ReutersEstimates, analysts were expecting the Company to report revenues of $184.6 million, net profit of $16.3 million and EPS of $0.59 for fourthquarter of 2009 and revenues of $525.4 million, net profit of $47.2million and EPS of $1.94 for fiscal 2009.”In a recent press release, the Company reported the following: