Dutton Associates Announces Investment Opinion: Shengtai Pharmaceutical Strong Speculative...

Dutton Associates Announces Investment Opinion: Shengtai Pharmaceutical Strong Speculative Buy Rating In Initiating Coverage By Dutton Associates

ROSEVILLE, Calif.--(Business Wire)--
Dutton Associates initiates coverage of Shengtai Pharmaceutical
(OTCBB: SGTI) with a strong Speculative Buy rating and a price target
of $5.11. The 24-page report by Dutton senior analyst Stanley Ng is
available at www.duttonassociates.com as well as from First Call,
Bloomberg Professional, Capital IQ, FactSet, Zacks, Reuters, Knobias,
and other leading financial portals.

We are initiating coverage on Shengtai Pharmaceutical with a
Strong Speculative Buy rating and a 12-month price target of $5.11 per
share. Shengtai is principally engaged in the development, production,
and distribution of pharmaceutical grade glucose in the PRC.
Pharmaceutical grade glucose is the raw material for pharmaceutical
manufacturers to add specific formulations to produce medicated
transfusion that is one of the most commonly used clinical
prescriptions in hospitals and heath care institutions and a
well-accepted treatment routine for many ailments. Shengtai also
manufactures glucose and starch products for food and beverage
industry for the domestic market. In our view, Shengtai is an
attractive play to participate in the prosperous prospects of the huge
and rapidly growing PRC healthcare market, especially the fast growing
pharmaceutical glucose for transfusion solution market. Shengtai
enjoys several distinct advantages over its competitors, such as
proximity to raw material supply, a dominate market share of 40% in
Dextrose Monohydrate and 25% in Dextrose Anhydrate in China,
vertically integrated manufacturing capability and geographical
proximity, and cross-cultural similarities to the end markets in Asia.
Based on our production capacity expansion and utilization, product
pricing and margin assumptions, we forecast Shengtai's revenue to
surge from $51.7 million in FY2007 to $119.5 million in FY2009 and to
$149.4 million by 2010. Diluted EPS are estimated at $0.49 for FY2008,
$0.65 for FY2009 and $0.82 for FY2010.

About Dutton Associates

Dutton Associates is one of the largest independent investment
research firms in the U.S. Its 30 senior analysts are primarily CFAs,
and have expertise in many industries. Dutton Associates provides
continuing analyst coverage of over 140 enrolled companies, and its
research, estimates, and ratings are carried in all the major
databases serving institutions and online investors.

The cost of enrollment in our one-year continuing research program
is US $35,000 prepaid for 4 Research Reports, typically published
quarterly, and requisite Research Notes. The Firm does not accept any
equity compensation. We received $35,000 from the Company for 4
quarterly Research Reports with coverage commencing on 8/05/2008. Our
principals and analysts are prohibited from owning or trading in
securities of covered companies. The views expressed in this research
report accurately reflect the analyst's personal views about the
subject securities or issuer. Neither the analyst's compensation nor
the compensation received by us is in any way related to the specific
ratings or views contained in this research report or note. Please
read full disclosures and analyst background at www.jmdutton.com
before investing.

Dutton Associates
John M. Dutton, 916-960-0623

Copyright Business Wire 2008