Bluestar Secutech Share Discussion Threads

[edmundshaw] 27/1/2011 18:14

BSST is quoting 75% of OUTSTANDING receivables, of course. If H2 is stronger, as normal, the receivables number is still going to be quite sizeable. Payment terms in China have not changed much AFAIK.

That would leave RMB 60m from H1 and earlier, plus revenue expected well over 100 RMB, presumably mostly uncollected. Could still have around RMB 200m in the accounts. More if ther is growth in H2 yoy.

I am talking period ends of course, not December snapshot.

[shanklin] 20/1/2011 07:01

Thank you for the replies. It will be interesting to see what they report.

[3800] 19/1/2011 19:49

Hi Liarspoker, you have just wrote the bit the whole market is waiting for, IF Bsst do not come up with that collection of 75% of recievables there is going to be some serious selling. frankly I was quite surprised that the company was willing to give itself such a firm target. they arn't just aiming for it, they have got to achieve it. If they do I am expecting a firm rise unless the rest of the numbers are really bad, are you sure its tomorrow? last years trading undate was on the 21st but the year before it was actually the last day of December.
3800

[liarspoker] 19/1/2011 19:32

It seems to me that a lot of cash goes on R&D, working capital ( ie inventories ) and in H1, 2010 an acquisition. You are correct though cash levels seems to be getting lower as time goes on. Perhaps a placing will occur next year or the year after. In my notes I have down the BSST are expecting to collect RMB 178m receivables in Q4,2010 ( 75% of total ). A funny positive is that at least they expense their share options. lol.

[liarspoker] 19/1/2011 19:18

Just looking over the last few years worth of interims I get the following figures:

Revenue:

2007: RMB 58,171
2008: RMB 80,556 +38.48%
2009: RMB 67,253 -16.51%
2010: RMB 103,374 +53.71%

Receivables:

2007: RMB 74,062
2008: RMB 138,086 +86.45%
2009: RMB 167,904 +21.59%
2010: RMB 237,057 +41.19%

Hopefully future results will follow the 2010 trend of receivables growing slower than revenue. it is important to note that companies trading at less than net working capital are usually thought of as basket cases by the wider market. Often these businesses have huge problems and are loss making. therefore they have been priced to go bust. As long as BSST is reporting truthful figures ( how do we know that ) it doesn't look too bad. Q4, 2010 was an important cash collection period for them so it will be interesting to see if any mention is made of it in the T/S.

[shanklin] 19/1/2011 18:50

LS

Is the apparent undervaluation related to the fact that every 6 months the receivables increase and, unlike GNG, BSST seem to be making no systemic effort to reduce them?

Or is it that BSST just keep selling more product and receivables go up proportionately to them? If so, have you any idea how much of this is essentially bad debt?

Happy to be corrected should I be wrong, but I'm just not sure I'm seeing profit converted into cash flow.

Cheers, Martin

[liarspoker] 19/1/2011 12:20

Trading statement due tomorrow or Friday imo. Can't believe this is so cheap - ignored by the wider market. A profitable net net with a good divi yield....crazy !

[liarspoker] 13/1/2011 16:52

Looks like a swap to me with the mm's taking a slice for themselves.

[bill182] 13/1/2011 16:36

Two 100,000 buys have gone through today! We should be receiving a trading update anytime soon, with hopefully some good news on the debtors position. You certainly need patience here, but hopefully we will be rewarded for staying the course.

[masurenguy] 06/12/2010 13:12

puku - some similarities but basically only in three respects:
a) Chinese
b) Main customers are large blue chip banks
c) High debtor day receivables ratio

There it ends - Geong is a software ECM business while Bluestar is predominantly a hardware CCTV buisness. Aside from sector one of the other main differences is that Geong have a growing recurring income (almost 50% of sales) and higher margins which should continue to grow as SaaS becomes a larger element of their sales mix. Geong also have a growing international dimension wheras Bluestar are almost exclusively involved in the Chinese domestic market but I'd expect that to change eventually.
FWIW my focus is far more upon Geong, where I currently have a much larger holding than in Bluestar.

[puku] 06/12/2010 12:38

Held this for 18 months at a small loss and disappointed at share price despite strong results. When will market wake up to its potential ? Perhaps at next results when debt should plummet.
Mas - have followed you on GNG - not yet bought in though - same scenario - strong performance but share price weak. China syndrome ?

[longsight] 26/11/2010 14:43

A disappointing reaction to my offer to forgive each other & move on. I guess you don't want to?

[masurenguy] 26/11/2010 14:36

Stegrego - 966: Longsight, You started all this way back when, I posted a quick overview of CMSH on 2 boards and Mas probably posted BSST on a couple of boards at around the same time. You came in here and accused us both of ramping etc. Then you started with the childish games of copying loads of text all over this board and then referring over and over to the company making 'Betamax' video recorders or something like that. Now i notice you are full on swearing like a trooper!

As Steg says - you gratuitously started all the BS posts on this thread !

longsight - 969: If you wish I will desist from commenting on BSST.

This has been a calm and constructive thread except during your unprovoked sporadic attempts to trash it over the past 18 months. It will only resume that status again in your absence !

[masurenguy] 26/11/2010 10:57

longsight - 962: And you shd be ashamed of yourself ramping a dog like BSST.

Please cut and paste the posts where I have ramped BSST. I have challenged you to do this several times before and you have completely failed to do so and this is just more of your dishonesty and consistent innuendo !

Where RCG is concerned I have provided plenty of circumstantial evidence in #959 and there is still even more available although the point has already been clearly and definitively illustrated.

[longsight] 26/11/2010 10:40

Mas - I think you shd stick to talking about RCG.

Still no evidence provided that iI lost money on RCG. I didn't. My main buys were in January last year so difficult to have lost money.

So mas you are a liar. And you shd be ashamed of yourself ramping a dog like BSST.

[masurenguy] 26/11/2010 09:50

GHF - some additional press coverage here too.

BlueStar SecuTech 6-month Profit More Than Doubles - Quick Facts

(RTTNews) - BlueStar SecuTech, Inc. (BSST.L) Thursday posted a rise in profit for the six months ended 30 September 2010, primarily reflecting higher sales and improved operating profit. Net Profit for the period increased to RMB 15.7 million from RMB 7.3 million in the year-ago period. Earnings per ordinary share was RMB 21.53 versus RMB 9.79 in the prior year. The company's pre-tax profit for the half year totaled RMB 15.69 million compared to RMB 7.27 million last year. Revenue for the period up 54% to RMB 103.4 million from RMB 67.3 million for the same period last year.