Ceapro Inc V.CZO

RE:Ceapro Q1 Financials

[Royal10]

Update by NOBLE CAPITAL: May 29, 2020 Healthcare CRPOF Other OTC Rating Outperform Unchanged Current Price $0.29 Target Price $1.08 Market Capitalization 20.952M Shares Outstanding 77.34M Float 71.71M Institutional Holdings 4.39% 12-Month Low/High $0.11/$0.33 Average 90-Day Volume 904000 Fiscal Year End 12/30/2019 Revenues ($ MIL) Period 2018A 2019A 2020E Q1 $2.27 mm $3.20 mm Q2 $2.73 mm $3.05 mm Q3 $2.13 mm $2.91 mm Q4 $4.47 mm $3.72 mm $11.6 mm $12.9 mm $13.4 mm EPS ($) Period 2018A 2019A 2020E Q1 $(0.004) $(0.008) Q2 $(0.002) $(0.007) Q3 $(0.004) $(0.001) Q4 $0.006 $0.002 $(0.004) $(0.014) $(0.03) Ceapro Robust Q1 Results With 34% Sales Growth Solid Q1/F2020. Ceapro yesterday announced financial results for the first quarter of F2020. Despite the ongoing COVID-19 pandemic, the quarter was highlighted by strong results as Ceapro reported a net profit of $1.126 mm compared to a net loss of $(0.64) mm in Q1/F2019. Product sales in the quarter increased 34% relative to Q1/F2019. Revenue growth driven by avenanthramides sales. The 34% growth in total revenue relative to last years quarter was primarily attributed to a 68% increase in avenanthramides sales. In Q1/F2020, Ceapro generated CFO of $0.531 mm versus CFO of $0.367 mm in Q1/F2019. In the quarter, gross margin increased to 56% from 42% in Q1/F2019. Business development opportunity. Ceapro's avenanthramides have potential medical applications for joint inflammation, inflammatory bowel syndrome, atherosclerosis, colon cancer, among other potential targeted diseases. Given the broad scope of potential medical benefits, we believe Ceapro will be able to attract a global leader in the sector to sign a high value partnership. Reiterating Outperform rating. We believe Ceapro will emerge as a significant competitor in the personal care, nutraceutical and cosmeceutical markets. We believe that the expansion of Ceapros business into the biopharmaceutical industry, combined with steady growth of its base active ingredients business, will attract new investors. We are reiterating our Outperform rating and US$1.08 target price on the stock. Equity Research Cosme Ordonez, MD, Ph.D., Senior Life Sciences Analyst [phone], [e-mail] Noble Life Science Partners Trading: [phone] Sales: [phone] www.noblelsp