Good, AOB still in line with my expectaion

My expectation is that he keeps pace of 29% increase.

[Raise my strong buy point from 8.2~9 to
$9.5.
Remain its 12 months target $15.]
For your reference, 25% increase growth rate means double the price in 3 years.
if more than that, take less time.
and annual average return would be 33%.
I will read further into its filing later on.
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American Oriental Bioengineering Reports First Quarter 2007 Financial Results
Monday May 7, 4:01 pm ET
- Revenues Increased 34.8% to $25.7 Million in 1Q07
- 1Q07 Net Income Increased 31.1% to $6.4 Million, or $0.10 per Diluted Share
- Company Provides Financial Outlook for 2Q07 & FY07

American Oriental Bioengineering, Inc. (NYSE: AOB - News), a leading manufacturer and distributor of plant-based pharmaceutical and nutraceutical products, today announced financial results for the first quarter of 2007.
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Revenues for the first quarter of 2007 increased 34.8% to $25.7 million from $19.1 million in the first quarter of 2006. This increase reflects $6.4 million in revenue from the Company's Jinji product portfolio, as well as year over year growth in the Company's core PBP and PBN products. Revenue from PBP products increased 52.4% to $18.6 million from $12.2 million in the prior year's first quarter, driven primarily by the Jinji products series, including the Company's newly launched Yi Mu Cao product for the relief of pre-menstrual symptoms, and by the Cease Enuresis Patch. Revenue from PBN products increased 3.7% to $7.2 million from $6.9 million from the first quarter of 2006, due to increased demand for the Company's soy peptide products.

Gross profit in the first quarter of 2007 increased 44.1% to $17.7 million from $12.3 million in the first quarter of 2006. Gross profit margin increased 440 basis points to a record 68.8% from 64.4% in the prior year's period. The increase in gross profit was a result of increased sales of PBP products, which carry higher margins and improved operating efficiencies across both business segments.

Operating expenses in the first quarter increased 65.8% to $9.8 million compared to $5.9 million in the prior year period. This increase was a result of additional expenses related to GLP that was not associated with the company in the prior year period, as well as increased marketing and advertising expenses related to the Company's efforts to increase market awareness of its brands and products. Operating income for the first quarter increased 24.0% to $7.9 million from $6.4 million in the first quarter of 2006. Operating profit as a percent of sales in the first quarter decreased 260 basis points to 30.8% compared to 33.4% in the prior year period.

Net Income for the first quarter of 2007 increased 31.1% to $6.4 million, or $0.10 per diluted share, compared to $4.9 million, or $0.08 per diluted share, in the prior year period.

Mr. Tony Liu, Chairman and Chief Executive Officer of American Oriental Bioengineering commented, "We are pleased to report another quarter of continued growth in our business. Our major plant-based pharmaceutical and nutraceutical categories contributed to our revenue growth in the first quarter with the biggest contribution coming from our over the counter (OTC) products. Our newly launched Jinji Yi Mu Cau product contributed to our results in the quarter and we are satisfied with the momentum of this product as we move into the second quarter. We continued to effectively manage our operating costs and sourcing efficiencies and were pleased to see stable pricing for our leading products, all of which resulted in record gross margin."

Fiscal 2007 Financial Update

For the second quarter of fiscal 2007, the Company anticipates revenue of approximately $33.0 million, a 45% increase compared to second quarter 2006 revenues of $22.8 million, with the majority of this revenue growth coming from products that serve the OTC market, primarily the Jinji product portfolio. The Company anticipates diluted earnings per share of approximately $0.14, based on a diluted share count of approximately 66.6 million shares outstanding.

For the 2007 fiscal year, the Company anticipates revenues to increase at least 32% from the prior year to at least $146.0 million. This guidance does not account for any potential acquisitions in 2007.

Mr. Liu concluded, "We continue to focus on opportunities that will further enhance the presence of our leading product brands and strengthen the total number of plant-based healthcare products in our portfolio. Consumer awareness of our brands continues to grow through our marketing efforts and the ongoing expansion of our diverse channels of distribution.

We also remain highly focused on the introduction of new products through the pursuit of complimentary acquisitions and additional product line extensions. We believe that these initiatives will better position our company for future growth and will further establish AOBO as a leading integrator and cultivator of plant-based traditional Chinese medicine products."