Ft Cesg Discussion Threads

[dorset64] 25/1/2008 21:35

were they put through plus? Have you had them confirmed as a buy from your broker. Was looking into this one and it goes up 25% today, have I missed the boat here.

Dorset

[kenatbabken] 25/1/2008 17:29

I bought 12,000 at 32p early afternoon but its not showing

[0rb1t] 25/1/2008 16:45

Ended 6th on the leaders board. Must be some trades yet to be reported.

[andrbea] 25/1/2008 16:33

1 modest buy of ca 3600 quid causes such a late leap in the price..

must be short of stock?

nia dyor

[0rb1t] 25/1/2008 16:14

15th riser of the day so far.

[0rb1t] 25/1/2008 15:40

Digital Look - New Issues Round Up

In a very quiet week for IPO's, China Eastsea moved from PLUS to AIM.

The group, which provides information technology and business process outsourcing services, did not raise any money on admission.

"The directors believe the trading on AIM will potentially broaden the current shareholder base and enable investors to share in any future success of the group through increased liquidity," said the group.

"In addition, the admission will increase the public profile of the group and will give the group access to an institutional capital market to help fund its future development and assist possible acquisitions," it added.

China Eastsea recorded revenues of £8.79m and pre-tax profits of £2.23m for the year ended 28 February. The company has a market capitalisation of about £17.02m.

[0rb1t] 25/1/2008 14:26

Growth Business - Monday 21st January 2008

Chinese IT business moves from PLUS to AIM

China Eastsea Business Software, a company providing IT and business process outsourcing services to oil companies within China, has applied for its shares to be traded on AIM. The move follows the company's delisting from PLUS earlier this month.

In conjunction with China Eastsea's move to AIM, a UK-based non-executive director has been appointed. Richard Sermon is chairman of corporate communications consultancy Gryphon Corporate Counsel, and holds non-executive posts at various companies including US-headquarted PR firm The PBN Company.

China Eastsea is incorporated in Jersey and its services include both IT consulting and the custom-building, implementation and maintenance of software systems. Its clients are in the petroleum, petrochemical, power and telecoms industries, as well as the public sector.

The company was formed in 2003 as a buy-out of the IT department of Chinese energy giant Sinopec, which is now a key customer expected to provide revenues of at least £1.6 million a year for the remainder of its contract with China Eastsea, which has 16 years to run.

Turnover for the year ending February 2007 was £8.8 million, double that of the previous year. Pre-tax profits were £2.3 million, 28 per cent higher than the year before.

...
Nick Britton

[0rb1t] 25/1/2008 14:22

Tiddler to watch

"China Eastsea Business Software, an IT consultant and back office outsourcer, rose 3p to 28p on its first day of trading on AIM after its broker Evolution transferred it from Plus Markets. The company has evolved from the outsourced IT department of China's refining giant Sinopec, which still holds 50per cent. "


This story is misleading. Sinopec/ZRCC only hold 50% of Ningbo Eastsea Lanfan Technology Limited. China Eastsea holds 100% of two other companies. Minority interests have accounted for between 5% and 30% of profits. I assume this depends on how much work is done for ZRCC. In the future the company will become more diversified and the percentage should go down.

[capt bligh] 25/1/2008 14:06

I think it will be interesting when they make their next purchase... in Chinese terms their paper is incredibly undervalued it ought to make deals much easier.

Tipped as "tiddler to watch" in the Times.

[0rb1t] 25/1/2008 13:16

Just for a laugh I see Wipro is valued at US$17.87 billion!

[0rb1t] 25/1/2008 12:58

After all the contract wins this year at Geong I guess they could be on an EV/E of about 10 for the financial year just ending. They have a market dominant position supplying financial institutions and they are moving into selling their software package which will be high margin.

I agree China Eastsea does look very cheap in comparison (especially on historic earnings). CESG are currently growing up to 100% a year and have high ambitions on becoming an international player. In ten years time they want to be equivalent to Wipro or TCS in India. Currently they have a market cap of about £19m! (I hold GNG as well)

[capt bligh] 25/1/2008 12:41

Looking at Geong which probably isn't all that comparable ( but heh its a chinese tech support/software co) ... EV/E is about 40

[0rb1t] 25/1/2008 12:33

Year end is 28th Feb so the EV/E will be down to 3 soon!!!

The management have confirmed that they are trading in line to their expectations. These are estimates are from CityIR Oct 06:

Year end Sales EBITDA Pre-Tax Tax RateEPS
February (£m) (£m) (£m) (%) (p)
2008E* 17.50 6.75 6.26 2.00 6.67

[capt bligh] 25/1/2008 11:52

EV/E now about 5

[andrbea] 25/1/2008 10:05

bought some as well..

here's a write-up about cesg

[capt bligh] 25/1/2008 09:28

hello... this was a very good start imv

[0rb1t] 24/1/2008 12:49

There can't be much stock around as the spread has closed to 27p vs 28p. edit: just checked there's only 3000 shares available on-line.

[0rb1t] 24/1/2008 12:48

Mas, It wasn't me. I've been buying for the last six months via the plus market.

[matt] 24/1/2008 12:13

And all the past news:


30 NOVEMBER 2007

CHINA EASTSEA BUSINESS SOFTWARE LIMITED
("EASTSEA" OR "THE COMPANY")

INTERIM RESULTS

CHAIRMAN'S STATEMENT

I am pleased to announce a strong set of interim results for the period ended
31 August 2007 with growth across all sectors of the business which have been
in line with the estimates from the beginning of the year.

FINANCIAL AND OPERATING OVERVIEW

- On year on year basis, Revenue up 61.8% to GBP3.9 million (2006: GBP2.4
million)
- Profit after tax up 321.5% to GBP0.8million (2006: GBP0.2 million)
- Net assets increase to GBP10.3 million (28 Feb 07: GBP9.3 million)
- Cash at bank of GBP3.6 million (28 Feb 07: GBP4.3 million)
- Share options of 6,030,000 were granted on the 18 August 2007 with exercise
price of 21p
to staff of the Group. This resulted in GBP 138K share payment charges being
charged to Profit and Loss.
- Due to sustaining a healthy cashflow, the group has made early loan
repayments for GBP0.3 millions and balance of GBP0.2 millions are to be paid
next year.
- On the acquisition of Beijing Huashen Huizheng System Engineering Technology
Ltd (BHH), BHH had achieved its 2007 targets and the group issued 1,567,000
shares to the original shareholders of BHH at price of 22.11p.

The interim results reflected the revenue stream passing through from the
previous contracts and new contracts.

BOARD AND MANAGEMENT CHANGES

We have strengthened the composition of the Board through the appointment of
David Kar Ning Tsui.

David Tsui joined the group in mid August as CFO and is promoted to Executive
Director role on this reporting date. In this short time, David has
demonstrated to the board members his ability in managing Finance function and
has already able to make valuable contributions to the group. His previous
experiences with the UK group Inchcape Plc in Hong Kong has proven to be very
valuable. David has indepth experiences in audit, taxation and corporate
finance from his previous career.

OUTLOOK

In the years ahead, we expect to see a continued increase in demand for
petrochemical and petroleum products in China resulting in further investment
in the industry's IT infrastructure and maintenance services. We will further
work with our major customers as business partners.

With a team of committed and high qualified staff and a number of exciting
opportunities on the horizon, we look forward to another successful year ahead.

Sinopec has procured another big project on oil refinery facilities at Qing Dao
which the Group is in a very good position to win the contracts relating to
this project.

There are a number of different M&A opportunities (including acquisition, joint
ventures and investment and project initiatives).

The Group plans to acquire Shanghai Time Technology Development Limited
("Shanghai Timetech") a company of nearly 60 people that provide IT services to
the power industry. Major clients include Shanghai Power, Anhui Power, Zhejiang
Power, and Jiangxi Power etc.

The Group plans to restructure the IT organization of the Ningbo Education
Industrial Group that engages in the IT infrastructure installation and student
card system for all schools and training institutions of Ningbo, the Ningbo
Education Bureau and its branches. This will allow the Group to expand its IT
services to the education sector, which receives increases recognition due to
the overall demand and the strong support of the Chinese government. The groups
holding would be equal or more than 50.1 percent of the later organization.

In the annual report of 28 February 2007, the group stated that it intended to
be listed in the AIM market and on the latest, it is envisaged that the group
will be listed at AIM at middle of December and has appointed Evolution
Securities Ltd as the Nomad for the listing.

The AIM listing will surely provide a platform to access new capital, and
provide an acquisition currency, for new opportunities.


Eric Zhu
Chairman
30 November 2007

* Part 2 to follow *


* Part 2 *

CONSOLIDATED INCOME STATEMENT

FOR THE PERIOD ENDED 31 AUGUST 2007

Six Six
months months
to 31 to 31
August August
NOTES 2007 2006
unaudited unaudited
GBP'000 GBP'000

REVENUE 3 3,932 2,430

Cost of sales (2,203) (1,416)
------------------------

GROSS PROFIT 1,729 1,014

Other operating income 69
106
Distribution costs (97) (105)
Administrative expenses (563) (277)
Foreign exchange (losses)/gains -
------------------------

EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION 1,138 738

Interest income 6 14 9
Finance costs (17) (6)
Amortisation of intangibles (37) -
Depreciation of property, plant and equipment (81) (63)
------------------------

OPERATING PROFIT BEFORE SHARE BASED PAYMENT 1,017 678
CHARGE
Share based payment charge (138) (469)
------------------------

PROFIT BEFORE TAXATION 879 209

Taxation 9 (19) (5)
------------------------

PROFIT FOR THE YEAR 860 204
------------------------

Attributable to:
Equity holders of the parent 609 194
Minority interest 251 10
------------------------

860 204
------------------------

EARNINGS PER SHARE 10 Pence Pence

Basic 1.52 1.28
------------------------

Diluted 1.52 1.17
------------------------

All amounts are derived from continuing operations.


CONSOLIDATED BALANCE SHEET
AS AT 31 AUGUST 2007

As at 31 As at
August 28 February
2007 2007

NOTES unaudited audited
NON-CURRENT ASSETS GBP'000 GBP'000

Goodwill 11 1,116 1,116
Intangible assets 12 338 375
Property, plant and equipment 13 1,448 1,311
------------------------------
2,902 2,802
------------------------------

* Part 3 to follow *

[masurenguy] 24/1/2008 12:06

First trade on AIM just reported - 5K @28p - was that you Orb1t ! :o)

[horneblower] 24/1/2008 11:56

Plus Chart (2 years)

[flyfisher] 24/1/2008 11:43

For anyone interested, their is a 6 month historical chart on the plus markets website.

[masurenguy] 24/1/2008 11:01

Cheers for the Charts !

Okay - from their AIM Admission Document released this morning

"CHINA EASTSEA BUSINESS SOFTWARE LIMITED
ADMISSION TO TRADING ON AIM

China Eastsea Business Software Ltd, which provides information technology and
business process outsourcing services, announces the successful admission to
trading on AIM today. Evolution Securities Ltd will act as Nominated Advisor and Evolution Securities China Ltd will act as Financial Adviser and Broker to China Eastsea. China Eastsea's stock exchange symbol is CESG. At the close of business on 23 January 2008 the shares were traded on PLUS at a mid price of 24.5p, giving the company a market capitalisation of £17.02m. Following the admission to AIM of 69,462,000 ordinary 5p shares trading on PLUS will be cancelled. No funds are being raised on admission".

So we have 69.46m issued shares and a market cap of £17m based on the mid price of 26.5p on a 25-28 spread. As at 11.00am no AIM trades yet reported.

[0rb1t] 24/1/2008 10:49

Current shareholders:

Eastsea Group Limited1 21,450,000 30.9
MC Capital Asia Pacific Private Equity Fund LP 8,732,000 12.6
Interman Digital Limited2 6,853,500 9.9
Booming Holdings Limited3 6,571,500 9.5
Huitung Investments (BVI) Limited 6,369,000 9.2
HSBC Global Custody Nominee (UK) Limited 4,108,153 5.9
Rich Hope Investments Limited 2,100,000 3.0

1 Jennifer Xue is the beneficial owner of these Ordinary Shares
2 Andy Yok Lam Tang is the beneficial owner of these Ordinary Shares
3 Hong Yu, a senior employee of China Eastsea, is the beneficial owner of these Ordinary Shares