Dallas, Texas 02/18/2014 (FINANCIALSTRENDS) – Synthesis Energy Systems, Inc. (NASDAQ:SYMX) made a record-breaking 52 week high of $2.49, feb 14.2014, follow news of new joint venture that the company has brokered with Chinese company through one of its subsidiaries-SES Asia Technologies.
Zhangjiagang Chemical Machinery
Synthesis Energy Systems, Inc. (NASDAQ:SYMX) has reported a definitive agreement with Zhangjiagan Chemical Machinery to begin a joint venture called ZCM-SES or Sino-US Clean Energy Technologies. The company reported that ZCM will bring $16.5 million to the deal and will own over 65%. SES is expected to provide SES exclusive use of proprietary technology it will use in gasification in countries as varied as Mongolia, Philippines, Indonesia as well as Malaysia besides Vietnam 35% ownership of the venture.
Synthesis Energy Systems, Inc. (NASDAQ:SYMX) saw its stocks soar following the announcement. Trade volumes too were maxed with over6 million shares, over standard volume of 314,108.
Synthesis Energy Systems, Inc. (NASDAQ:SYMX) has since been rated sell by analysts. The reasons are the low gross profit margins, which are currently poised at 22.30%. Besides, the company had also not performed on par at the S&P 500 Index. The decline was 12.29% which was reported last year. The earnings per share improvement were due to the recent growth in the organization. The energy equipment and services industry did record Synthesis Energy Systems, Inc. (NASDAQ:SYMX) as the one of the better performers currently.
The company also reported higher earnings per share with the most recent quarter comparison. The positive growth curve for the company with positive earnings was indicative over the past year.
The new venture is expected to see the company record growth given its diversified interests in energy, gasification as well as technology companies. The solutions in the energy as well as the chemical industries are found to have brought higher valuation this renewable energy equipment and service industry company.