Ft Cesg Discussion Threads

[arthurly] 23/2/2010 07:34

10p a share. Seems very fair. Wouldn't be surprised to learn that the company is now doing rather better than it was, though !. I reckon they want to list on the Shenzen exchange at some stage. I think the CEO said something to that effect a while back.


The Company announces that it is proposing to delisting from AIM and offering a
tender offer to certain Shareholders, for some of the Company's shares not
already owned by certain major Shareholders and Directors.
The Company is therefore seeking Shareholder approval to:
(a) purchase Ordinary Shares by way of the Tender Offer; and
(b) cancel the admission of its Ordinary Shares to trading on AIM.
The price to be paid for each Ordinary Share subject to the Tender Offer is 10
pence. The Tender Offer applies to a maximum of approximately 24,921,847
Ordinary Shares representing approximately 32.2 per cent. of the current issued
share capital.

[dealit] 23/2/2010 07:27

proposed cancellation, how much will we get not?

[explorer88] 10/11/2009 09:19

longsight - that's a fair summary based on the, rather poorly worded, last RNS. I think GNG (which is one of my largest holdings) is potentially rather special,other Chinese IT companies (e.g. SFT) have performed rather worse than CESG, with declining revenue rather than stable revenue over the last twelve months.

fwiw, i've recently found direct contact with CESG fruitful. I don't expect any bad debts from CESG's Chinese clients.

CESG made approx 4p eps in FY08. I'm expecting, v. approx., 3p, 5p, 7p eps in the next three FY from organic growth (i.e. approx 30p, 50p, 70p share price targets using p/e 10), however i think there is a high chance of M&A activity within that timeframe which will see either eps increase or business sold to create better critical mass in China's bpo sector

[longsight] 10/11/2009 08:34

explorer - however you look at it, you can not avoid the conclusion that receivables are appallingly large & that CESG itself has cast doubt over payment of some of it without specifying the amounts involved. I agree CESG still looks cheap on a BS basis but if it can't get the business performing during such a period as we have just had in PRC [compare & contrast GNG] - then when will it? If it starts losing money / recognising bad debts then the BS will soon shrink. I also think 400 staff is perhaps an anxiety rather than a positive. Also, where are all the big contracts with Sinopec etc? The basis of this business i.e. the contracts with Sinopec & CNOOC are not coming through like we were led to believe. Why? We don't know & neither do CESG care to explain.

I wd also love to buy into CESG at these prices, especially having expended much time researching them in the expectations of success, - but I need to see that the business can perform. I still can not grasp the logic of the acquisitions they made which appear to have even worse cash flow charecteristics than the original business.

Good luck & hoping for investors that this quality business starts to deliver soon. Regards LS

[explorer88] 10/11/2009 08:15

m cap £5.41m

net current assets £11m :-)

H1 revenue was stable. 10% rise in trade receivables over last 6 months. Both anticipated.

CESG currently (as of yesterday) employ approx. 400 staff

Took the opportunity this morning to add 40,000 at 7.5p

[rcg1618] 09/11/2009 18:34

Market Cap £7.7M is based on share price of 10p. £5.41M for the current price of 7p.

[rcg1618] 09/11/2009 17:51

Certainly things are more likely to get better than to get worse?

[pakomacha] 09/11/2009 17:38

Market Cap £7.7M

NAV £13.1M (Balance sheet valuation less goodwill and intangibles)

I'm still holding!

:)

[vision88] 07/11/2009 19:04

Longsight

In consideration to your wish to record your position i shall only give you 2 Brown marks as 4 was to be awarded your longsight has hope and i shall monitor your vision

Happy Guy Fawks night to you Longsight

Now there's was the only man with very good intentions for parliament

who never quibbled about exspense's

[longsight] 06/11/2009 13:26

GHF - I agree with your criticisms of myself! I certainly have goaded Mas on BSST & I accept that I am a hopeless juvenile to do so. Intermitently I attempt to reform myself but I am a hopeless sucker for winding mas up.

Fortunately, I gave up annoying people on the GNG board - a Co I have a lot of respect for despite both having lost a packet on them & also believing that posters are somewhat uncritical of the inherent weaknesses in their business model.

I have recently annoyed some people on wcc - but I genuinely hover over whether to buy in there or not & wish to probe the case either way [cement is an immensely boring business though..]

I honestly haven't goaded anyone on here at all. I was very interested in CESG & spent a lot of time researching it - I noted warning signs following their flurry of acquisitions after the AIM listing but I am genuinely very disappointed to see them stumble so badly. I really am not gloating here & I hope that their undoubted quality will help them get it together again.

I do think investors wd help themselves to have a more open debate about shares on these boards. I am a well recognised fanatic on RCG - but still post on what I consider to be the negatives as well as the positives.

GHF - I wish to record my respect for your balanced & polite style of posting. Thanks LS

[glasshalfull] 06/11/2009 13:11

Agree with your synopsis longsight.
I've been out for an age and remember posting that your analysis was spot on.

I've noticed however that you have been "goading" PIs on this and the BSST thread. Don't know what you're trying to achieve. Many investors I'd imagine may be privately licking wounds and your style will only create animosity.

FYI I made the sum of £158 on BSST and have disposed of my entire holding. Not my finest investment and again I share many of the points you made, just not the style in which you have done so.
My only Far East holding is in RCG. I think (again) that we both agree on it's significant undervaluation.

Best wishes to you longsight. I value your inputs but wish you'd be less abrasive on the boards.

Regards,
GHF

[longsight] 06/11/2009 12:52

Well done to CESG in releasing these results on a friday - shd really have waited until 4.29pm though. Still waiting for one of the enthusiasts on here to comment on the Results .....

[pec2004] 06/11/2009 10:59

Looks like someone bought 200k after the results.

[longsight] 06/11/2009 10:07

These Results are truly awful - check out Receivables - & how much of that will actually get paid given the reference to customers in difficulty? The China boom is certainly passing this Co by. I spent a lot of time researching CESG when they were still on PLUS. Never, thankfully, bought in. Now look on with increasing horror. The warning signs were there to wd be buyers. Very cheap m cap - but well merited. Who knows, they might get their act together. They certainly appear to have a lot of intrinsic quality in their product offering but something has gone badly wrong.

[0rb1t] 05/11/2009 19:31

IT Industry in China is booming:



In the first 9 months Xi'an's software industry revenues increased year on year into a four

Xinhua Xinhua October 25, Xi'an, Xi'an Software Park has recently published data show that under the impact of the financial crisis, Xi'an Software industry revenue increasing rather than reducing. January to September this year, the software base revenues totaled 24.64 billion yuan, up 40.08%; exports totaled 104 million U.S. dollars, an increase of 31.65%.

[0rb1t] 05/11/2009 19:25

Guo Hua Investment Company signed agreements successfully with 13 local governments to cooperate and develop wind-electric factories and controlled around 10.6 million-kilowatt capabilities wind sources, which occupied about 3100-squire km, to prepare well for the next step to cosmically develop wind-electric factory.

At the end of 2010, the total installed capacity of Wind Power of Guohua Investment will amounts to 1.5 million kilo watts. By the end of 2020, the accumulated installed capacity will amount to 6 million kilo watts. The company will try to set up 3 million Wind Power stations and develop renewable energy resources including sea Wind Power and solar power, and become the major player in the section.

[0rb1t] 05/11/2009 19:20

Oct 29

Signing Guohua Energy Company, help New Energy and Industrial

Recently, Beijing, China System Engineering Technology Co., Ltd. Shenzhen Hui was awarded Guohua Energy Investment Co. Ltd. Wind Power Production Information system hardware integration and equipment purchases.

Guohua Energy Investment Co., Ltd. was established in 1998, the net assets of 8.845 billion yuan, Shenhua Group Co., Ltd. is a solely state-owned company's management. The main task is to carry out in order to wind-based renewable energy investment and development, and management and recovery of coal on behalf of the oil funds. In 1999 entered the field of wind power. Since 2005, the business focus turned to wind-based renewable energy sector.

The project need to achieve the building of wind monitoring systems and groups of wind power production information systems side of the building work. And to consider the realization of video conferencing systems, equipment management and point of inspection systems, wind power generation capacity after the evaluation system, the wind farm spare parts management system function interfaces and bandwidth settings, in line with Guohua Energy Investment Co., information technology master plan requirements, avoid duplication of construction .

China Shenzhen Hui-Zheng Guohua Energy companies have repeatedly undertake the company's projects, and by virtue of "tough fighting" work style and "work together to fulfill its duties," a good work ethic to the user has left a deep impression on him. This once again hand in hand, Chinese companies will be deep-hui is a traditional style of work for the new energy industry of information technology to contribute! .

[0rb1t] 20/10/2009 14:06

Schneider Electric to renew strategic cooperation agreement with IT Technical Services

Chinese Deep-hui is the company commitment to Schneider Electric (China) Investment Co., Ltd. management software (except for SAP, desktop support away) technical services for three years, provides a systematic needs analysis, technology development, support, operation and maintenance services, timely and effective manner to protect Schneider Electric business systems on-line and stable operation, won the full trust and praise of users, has recently renewed its IT technical services both strategic cooperation agreement, both sides will continue to strengthen cooperation and realize technology sharing of resources, improve the efficiency of technical services, for the user's business unit to provide better and continuous service.

Schneider Electric (China) Company IT department to upgrade this year, Schneider Electric Asia Pacific Information Center, the two sides will focus on a mature technology services model to the Asia-Pacific region, offering Schneider Asia-Pacific information technology to make greater contribution.

[0rb1t] 13/10/2009 12:59

Sounds like CESG are doing a pilot for the Chinese Army:

[arthurly] 07/10/2009 12:56

I had 20k at 10.1p too, explorer.

[explorer88] 07/10/2009 12:13

bought a few at 10.1p/10.2p

[0rb1t] 24/9/2009 21:36

Today's news:



Google Translate is now translating China Eastsea as France! Not sure if that's a promotion for Zhu Zhao!

Zhu Zhao, chairman of France won the award for returned overseas students

Recently, the Municipal Organization Department, announced that a special division, United Front Work Department, Municipal Personnel Bureau, Bureau of Education, Science and Technology Agency jointly issued a circular for the first time in the city of returned overseas students to carry out named in recognition of outstanding activities in order to further implement the "concentration of engineering talent overseas study 1000 "to attract more overseas high-level personnel Laiyong innovations.

September 19 Ningbo Talent Technology Week Comprehensive formal signing ceremony in Ningbo International Conference and Exhibition Center, Hall 2 at. Chairman Mr. Zhu Zhaofa elected as the outstanding study abroad returnees, deputy secretary, Mayor Mao Guanglie personally award winning staff, and excellent studying abroad returned to Ningbo's contribution to the development of a high degree of recognition and praised. Zhu Zhao, chairman of France, said it will be easy to work for the development of home and contribute their part.

[0rb1t] 19/9/2009 14:33

Current news items:

31-aug-09

Recently, Chinese company won the bid the deep-hui is the traffic management platform for scientific and technological information resource sharing pilot project.



Looks like an ECM type product for local government at prefecture level (ie a sub-part of a province). Shanxi should not be confused with Shaaxi which is the neighbouring province! This is the one closer to Beijing:

Recently, by the Information Center of Shanxi Xinzhou City, entrusted Chinese deep-hui is the company contracted to build the party Xinzhou City, intranet application software systems development services. In accordance with Xinzhou City right party made within a web portal system, the construction of objectives: to offer multiple levels of complex party committees within the department, between departments, between the upper and lower the complicated relationship between the application and integration of data-sharing to build and to meet the data standardization, system modularity, process standardization, ease of operation-oriented, run and application of intelligent personalization as requested in the application process easy to use and promote them.

[dealit] 07/9/2009 20:05

As I see it the mms would not push the share price north on little share buying if they did not have an order to fill, who the buyer is we should find out shortly.

[loverat] 07/9/2009 19:33

Eh up. Is something brewing?