BIMI International Medical Inc (NASDAQ:BIMI) Stock Is All Set To Gap-Up On Solid Earnings

If you are looking into premarket action then it might be difficult to miss the rally that has been enjoyed by the BIMI International Medical Inc (NASDAQ:BIMI) stock so far.

Market Stats

On Monday, BIMI stock gained 2.83% at $0.6530 with more than 4.33 million shares, compared to its average volume of 5.27 million shares. The stock has moved within a range of $0.6452 – 0.6600 after opening trading at $0.65.

Earnings Recap

The stock has attracted the attention of investors in a big way and managed to clock gains of as much as 70% as a consequence in premarket trading today. In order to make sense of the rally, it might be a good idea for investors to take a look at the unaudited financial results for the third fiscal quarter that had been announced by the company on Monday.

In this context, it should be noted that the strong performance in the quarter that ended on September 30, 2021 may have been the reason behind the rally.

BIMI International Medical managed to generate revenues of as much as $13,777,494 for the quarter and that was a significant jump from the $3,091,071 that it had generated in the prior year period. It reflects a year on year rise of as much as 345.7%. The gross profits for the period came in at $2,029,109 and that reflected another big jump year on year considering the fact that in the prior year period, the gross profits had been $257,278.

Key Quote

“We are glad to achieve significant revenue growth in the third quarter. The growth was mainly driven by the increase in sales of wholesale pharmaceuticals. Contributing to the increase in revenues for the three months ended September 30, 2021, was the operations of our recently-acquired five hospitals”, said Mr. Tiewei Song, Chief Executive Officer and President of BIMI International Medical Inc. “Looking ahead, we plan to form partnerships with hospitals with regional reputations, with the goal of making quality medical care more accessible to the wider public, especially in less- developed areas, and to provide health management and healthcare services for both urban and rural residents in a more inclusive and coherent manner.”

Traders Corner

BIMI stock is trading below the 20-Day and 50-Day Moving averages of $0.72 and $0.72  respectively. Moreover, the stock is trading below the 200-Day moving average of $1.25. The stock is up 7% in the past month.