Ft Cesg Discussion Threads

[rivaldo] 23/7/2008 10:37

Thx also from to Orb1t.

Nice move today. Hopefully LDC are now out or have stopped for a breather. If and when they are out I suspect Arthurly is right and there may be a distinct shortage of stock.

[angel of the north] 23/7/2008 10:29

I bought into these for the tremendous credentials and potentials CESG has. I am amazed the share price has remained fairly static after great results and equally good newsflow. IMHO one of the best bets to carry us through turbulent share markets.

[arthurly] 23/7/2008 09:00

A belated thanks from me to Orb1t for his research.

Looks like relatively small buying today has pushed the share price up 10% ?

This is very seriously undervalued (even compared to other undervalued companies around at the moment) imho. Going to be very difficult to get hold of quantities of stock when this bear market ends - without forcing the share price up greatly.

[explorer88] 23/7/2008 08:36

CESG is undervalued and has excellent growth prospects (both organic and through acquisition).

I have increased my holding in CESG this week. Excellent long term potential to multi-bag...:-)

[glasshalfull] 21/7/2008 16:19

Concur....many thanks Orblt.

Regards,
GHF

[explorer88] 21/7/2008 13:17

Orb1t - you're on the ball as usual - well done ! ;-)

[0rb1t] 20/7/2008 17:27

It looks like CESG has a significant connection with Japan. Eric Zhu, the chairman, has worked in Japan and also studied over 2 years there. Andy Yok Lam Tang, Non Executive Director, has worked in Japan along with UK and US.

Along with the 12% holding by Mitsubishi Corporation the SYWG China Fund holds 8%. This fund was setup in cooperation with Aizawa Securities of Japan. Japanese merchant bank MediBIC Alliance ("MediBIC") also owns about 1.8% of the shares.

This was from 16th Nov 2005:

Eric Zhu, Chief Executive of Eastsea, said: "The cooperation with Medibic will help the Company to develop the IT outsourcing market for Japanese companies in China."

The opening of the Japanese facing outsource training at the Ningbo University makes it look like the City of Ningbo want to become an outsourcing centre for Japan (bit like Mumbai or Bangalore in India). As China Eastsea is the no.1 software company in Ningbo they will be able to employee them and provide these services IMO.

As one of the stated objectives for this year is to "Promote offshore capabilities
" would might see some offshore outsourcing contracts awarded to CESG soon.

[0rb1t] 20/7/2008 08:39

CESG already has a Japanese connection as 12% of the company's shares are owned by the Mitsubishi Corporation.

[0rb1t] 19/7/2008 22:36

Does this mean that CESG are targetting Japan to perform outsourcing?

[0rb1t] 19/7/2008 22:35

9 July 2008

Foundation of a talents training base for software outsource facing Japan

On 9th of July, University of Ningbo, Galaxy training and ESSE tech. founded a talents training base for software outsource facing Japan. The establishing ceremony was held in the theatre of University of Ningbo. On the ceremony, we invited vice-director of Ningbo Information Industry bureau, vice-president of University of Ningbo, president of Galaxy training school, president of ESSE tech. to be present and address. They expressed their wishes about the cooperation and encouraged the student to grasp the chance to improve their ability for future. The president of ESSE tech., Jiang Jiansheng appreciated that the government provided the opportunity and condition of talents for enterprises' development. He also hoped the company could contribute in software outsource facing Japan at Ningbo. Moreover, he expounded the understanding of "talent" from a company's perspective according to situation of the company and expressed that the company would like to provide chance of practice for the students.

The cooperation is planned to meet the need of construction of service outsourcing city proposed by city council. The training base will integrate the dominance and sources from local university of Ningbo, professional training institutions and software companies to solve the bottleneck problem of development of software outsourcing industry at Ningbo. It will promote the development of industry of software outsourcing facing Japan at Ningbo.

[0rb1t] 19/7/2008 22:32

7 July 2008

Won the bid for main network project of Jingcheng Equipment Technology Ltd.

Beijing Huashen Huizheng, the subsidiary of the Company, has won the bid for main network project of Jingcheng Equipment Technology Ltd. recently.

The project is planned to set up a main network covering all of the areas of the Jingcheng Company. The main network supports ERP system, MES manufacture implementing system and OA system of Jingcheng Company. After Beijing Huashen Huizheng investigated the situation carefully, it proposed practical, advanced, flexible, expansible solutions and obtained positive evaluations from every expert. Beijing Huashen Huizheng will fully utilize advanced ideas, technological dominance and accumulated experience to contribute to the construction of informationization of Jingcheng Equipment Technology Ltd.

[0rb1t] 19/7/2008 22:31

New contract:

4 July 2008

Won the bid for OA system project of Beijing Municipal Archives

Beijing Huashen Huizheng, the subsidiary of the Company, has won the bid for Beijing Municipal Archives OA system project recently.

Implementation of OA system for Beijing Municipal Archives will achieve unified login function for each business system through implementation of intelligent portal system and implement the organic combination of each business system and office system through developing various function modules for integrated official business. The project includes setting up of portal platform, integrating each business system, developing integrated office system, purchasing and total optimization of hardware and system software, and security assessment of application system under OA portal platform.

Beijing Huashen Huizheng will provide scientific and rational technical solution and perfect project implementation solution for Beijing Municipal Archives by fully utilizes accumulated experience of information technology. The project will be carried by an experienced project implementing and developing team to ensure the achievement of both short and long term goals.

Beijing Huashen Huizheng has built Administrative Approval System of Beijing Municipal Archives since 2003 with great customer satisfaction. We will keep working hard with Beijing Municipal Archives again and contribute more in accelerating the scientific and institutionalization administration and promote informationization.

[arthurly] 15/7/2008 10:30

Yep Orbit. Tangible net assets £12m at the end of Feb, probably £13m now. Company valued at £17m ? Daft for a high growth company with very large long term contracts.

One day this bear market will be over and this will be several times the current share price imho.

[0rb1t] 15/7/2008 10:21

A quick recap on the value here:

Current historic PE 4.6
Earnings forecast to increase by 50% this year.
Cash in the bank at £4.1m

Financial Year 2009 Priorities

- Continue to work closely with existing top ten customers and accelerate the organic growth
- Focus in servicing top level relationship with top 30 customers
- Promote offshore capabilities
- Continue to seek synergies across the business units to maximise resources and skills allocation
- Focus on investors relationships through PR and Nomad involvement
- Conduct two more road show towards the end of the year to raise the profile for the group

[0rb1t] 11/7/2008 16:11

Off the CESG's chinese website. Looks like they have won another contract:

Zaizhuanjiebao - Beijing-China Metallurgical the successful bidder (Yingkou) Ltd. backbone network equipment and technology project (July 7, 2008)
2008 年7月7日 July 7, 2008


Zaizhuanjiebao - Beijing-China Metallurgical the successful bidder (Yingkou) Ltd. backbone network equipment and technology projects


Recently, the deep-hui, the company is the successful bidder Beijing-China Metallurgical (Yingkou) Ltd. backbone network equipment and technology projects.

The project will build a covered the entire plant and equipment Yingkou the backbone network, the network carrying the rule of the Beijing-(Yingkou) Ltd. ERP equipment and technology management system, MES manufacturing execution systems and office automation system and other applications.

Deep-hui, the company is careful and meticulous research in the field, in accordance with the user's specific situation, both by the utility, advanced, flexibility and scalability of the design options, and the user and won the unanimous approval of the experts.

Deep-hui, now the company will make full use of information technology in the field of building advanced concepts, technology advantages and rich experience for the Beijing-China Metallurgical (Yingkou) Limited equipment and technology of the information and make contributions.

[james 2] 01/7/2008 16:01

Thanks Orb1t.

[0rb1t] 01/7/2008 10:11

There is definately no logic behind the stock market at the moment. The longer we wait for the value to be appreciated the bigger the jump eventually.

Evolution have produced more sensible estimates now post results. They have a target price of 56p. Research note in the header and here.

[hectorp] 30/6/2008 08:27

Good grief just saw the day's chart.. must be a shakeout attempt.
- Buy IMO.

[arthurly] 30/6/2008 08:26

Yes it's a mad market at the moment...

[stegrego] 30/6/2008 08:25

Added a few at 22p - bloody bonkers is this

[stegrego] 30/6/2008 08:24

Impressive - now 30% down after buying on great results...

[masurenguy] 30/6/2008 08:15

An 8% drop on a paltry volume of 26,000 shares sold !

[longsight] 29/6/2008 12:28

GHF, appreciate your response.

You wd think that CESG's high operating margins wd give them plenty of scope for addressing the cash flow eg by factoring the receivables.

I wd emphasise that I only spent the time looking into CESG because I do think it looks a great h quality business at a very low share price - notwithstanding the receivables.

[sa0705] 29/6/2008 12:23

longsight

as you are a blue poster...may be worth posting that on his own set up threads.

lol