EastBridge Investment Corp (OTC-BB: EBIG), a financial services company that provides Asian companies with access to U.S. markets, currently houses two agricultural companies operating in China that could see significant upside, alongside others in the sector like China Agritech Inc. (Nasdaq: CAGC) and China Green Agriculture, Inc. (NYSE: CGA).
While many investors are familiar with high-flying Chinese agricultural stocks like China Agritech Inc. (Nasdaq: CAGC) and Green Agriculture, Inc. (NYSE: CGA), few are familiar with EastBridge Investment Corp, which offers exceptional exposure to China’s growing agricultural industry through its equity stakes in two client companies that it is helping to access the U.S. markets through IPOs.
China’s Compelling Ag Economics Drive Growth
With the largest population in the world undergoing rapid urbanization, the importance of agriculture in China’s society is difficult to overestimate. The country is already the largest producer and consumer of fertilizers, consuming in excess of 60 million metric tons per year – or a full one-third of total global consumption – in order to meet increasingly higher demand for crop yields.
China’s consumers are also increasingly looking towards higher-end food products as personal and household incomes continue to rise. Credit Suisse’s China economist Dong Tao believes that the share of China’s private consumption to GDP will reach 23.1% in 2020, surpassing the U.S. ratio of 22.9%. With food products accounting for a large portion of personal spending, investors are bullish on the sector.
EastBridge Offers Inexpensive Access to Two Ag Players
EastBridge Investment Corp (OTC-BB: EBIG) is a financial services company that provides Asian companies with access to U.S. markets, while consistently maintaining an inventory of several Asian IPO clients. In exchange for these services, the company receives a 10% to 20% equity stake in their clients ahead of the initial public offering, enabling its own shareholders to invest in pre-IPO multiples.
Heyuan Dafeng Animal Husbandry Company Limited is a “green farming” business focused on premium hogs, feeds and organic fertilizer production. The EastBridge client could benefit handsomely as pork is among the most-consumed meats in China, while the market for high-yield organic fertilizers continues to grow at a rapid pace in order to meet end-market demand.
Jinkuizi Science and Technology Company is another EastBridge client that manufacturers environmentally-safe fertilizers in China and Southeast Asia. As farmers are looking to avoid chemical fertilizers that can damage soil over the long-term, Jinkuizi provides a natural alternative that can both help improve crop yields and protect the environment for the future.
EastBridge Investment Corp (OTC-BB: EBIG) continues to work to unlock value for its shareholders by helping its clients access liquidity in the U.S. markets. With its pre-IPO multiple equity stakes in clients, like these in the agricultural industry, the company is well-positioned to grow its value and deliver exceptional returns to its shareholder base.