Ft Cesg Discussion Threads

[0rb1t] 24/1/2008 10:43

Mas, The company is moving to the AIM to improve its profile. They are currently not raising any additional funds as they have spare cash. This is their vision statement:

"Its vision is to be a global corporation that leads China in becoming a serious alternative to the Indian ITO/BPO market. Its strategy is to leverage its client base, subject matter expertise, industry leadership, organizational & operational strength, financial health and investor relationships in order to significantly increase revenues and profits through mergers, acquisitions, share-taking and organic growth."

[0rb1t] 24/1/2008 10:41

This was the trading update included in the admission document just released:

"Since the end of the 6 months to 31 August 2007 * the business of the Group
has continued to trade in line with the Directors' expectations and the
Directors expect to report turnover that is significantly higher in the year
ending 28 February 2008 than the year ended 28 February 2007. The Group
continues to look to expand its business in to new areas and has been making
the necessary investment in personnel to achieve this. In addition to this, the
Directors continue to assess various acquisition opportunities including that
of Shanghai Time Technology Development Limited, which was referred to in the
interim results announced on 30 November 2007. Based on the Group's current
trading and strategic opportunities, the Directors remain confident about the
prospects of the Group."

[masurenguy] 24/1/2008 08:26

Looks interesting - existing list of customers seems heavily skewed toward national and provincial government departments.

How many new shares are being issued ? There were 69.4m in issue last summer.
Opening spread is 25p - 28p.

Can you please add Charts and News sections to this thread.

[0rb1t] 24/1/2008 08:15

China Eastsea Business Software (CESG) is an IT outsourcing service provider for the petrochemical, power, telecoms and government sectors in China.China Eastsea was formed via a management buyout of Zhenhai Refining and Chemical Company Ltd (ZRCC) IT department in 2003. ZRCC is a subsidiary of Sinopec which is one of China's leading petrochemical enterprises. China Eastsea has an exclusive 20-year agreement with ZRCC to supply IT services. The company has made strategic acquistions to diversify into the government, eduction, power and telecoms sectors. The Group now employes 450 staff and has eight offices located in Ningbo, Beijing, Hangzhou and Zhengzhou. The company has been awarded the Best ERP Application Award in China and was in the Top 500 High Growth High-tech Company of Asia Pacific area by Deloitte. They are an authorized SAP service provider and recognized as a software developer by IBM. Timeline of events:Jul 03 - China Eastsea founded from buy out of Sinopec ZRCC IT deptSep 05 - Company started trading on PLUSJul 06 - Beijing Huashen Huizheng acquired (government sector)Jan 08 - AIM listingFeb 08 - SEI Capability Maturity Model Integration Level 3 acreditedMar 08 - 60% interest acquired in Ningbo Education Information TechnologyJun 08 - Infa Group acquired (Telecom and power sectors)Nov 08 - Outsourcing contract signed with Schneider ElectricThe Information Technology Services (ITS) market in China is already estimated to be worth over 12 billion dollars. This is expected to grow annually between 38% and 48% over the next five years (according to the information intelligence provider IDC). China Eastsea's vision is to be a global corporation that leads China in becoming a serious alternative to the Indian ITO/BPO market.Revenue has grown 62% in 2006, 102% in 2007 and 23% in 2008 to £10.8m. EBITDA (excluding share based payment charge and AIM listing costs) up 64% to £3.8m (2007: £2.3m) making an adjust EPS of 4.93p. Cash at bank is currently £4.1m. CESG qualified to be tax exempt for the first two years and then tax at 7.5% for between three and six years.Estimates: 2009 2010 Date Rec Pre-tax (£) EPS (p) Pre-tax (£) EPS (p)Seymour Pierce 24-04-09 HOLD 0.70 0.90 2.10 2.60 16 Jun 08 Seymour Pierce Recommendation: Buy Target Price: 60p30 Jun 08 Evolution Recommendation: Buy Target Price: 56p -