Csf Group Share Discussion Threads

[igoe104] 17/1/2012 20:03

WHERE do you pick this 50p out of the air you fool.
You cant chart AIM companies they are news and market related.

ps ill have words if we meet at a opg agm one day.

[john09] 17/1/2012 14:05

Looks like this could dip to 50p again. Chart is not ideal

[gspanner] 17/1/2012 14:01

For me CSF buying one of the directors other companies has put me off...

May be a mistake, but there you go.

[cfro] 16/1/2012 09:53

In with a small holding this morning as i said i would yesterday.

[cfro] 15/1/2012 14:40

Cheers for your reply Glasshalfull. I think i have enough information now to make a decision, and will almost certainly buy a small holding tomorrow.

You're quite right, we were both in this together at the roughly the same time and sold out at the same time for exactly the same reasons. This has been on my watchlist for ages and seeing your post here a couple of days back, got me reading through all the RNS's and catching up with the latest newsflow. For me the added reason to sell last time apart from lack of newsflow, was the fact that im not so keen on 'Chinese' type co's these days.

However im willing to give this one another go and willing also to take the risk inherent here. But the only way im willing to take the risk is i want to see high reward, and i want to see that in excelerating earnings. That way the risk/reward should be nicely balanced.

I believe with the two new data centres opening and ocupancy rates rising then we should hopefully see earnings increase very rapidly.

So with house broker Cenkos forecasting EPS of 6.6p this year, which we think could be beat a little, and PBT of £15.2M and EPS of 7.8p for next, im hoping that will be smashed.

[cfro] 15/1/2012 14:40

Duplicate post.

[glasshalfull] 14/1/2012 18:22

We seem to be cropping up in a lot of stocks cfro ;-)

I remember the time when both you and I were invested in these. From memory I think it was the delay in confirming full occupancy at CX2 and lack of newsflow that made me cautious on the stock and I was out at a small loss.

These fears were unfounded and I have bought a few in the low 60's. Thought the good news over CX5 the other day may have brought about a greater rise so happy to take a further batch yesterday on the fallback.

As my rough 'n ready synopsis indicates, I think they are now getting to the point where they will be ratcheting up rental revenue fairly substantially and with this I expect maintenance revenue to follow.

The b/s is in good health and once you strip out the sale/leaseback adjustments the underlying business is going along nicely with considerable amount of opportunities available to the company all over SE Asia and China. So, an emerging market play.

I think you need to look closely at the interims.



Yep, 3.12p EPS but these should be read in relation to the the underlying H1 2011 earnings, those stripping out the benefit the company realized by carrying out the sale and leaseback of CX1

EPS of 15.53 sen (3.12p*) per share is lower compared to 18.75 sen (3.77 p*) per share in H1 2011 mainly due to the recognition of the gain on the sale and leaseback of CX1 in H1 2011 which contributed to additional basic earnings per share of 14.04 sen (2.82 p*)

So, they were actually up 10.6% H1 if you strip out the sale/leaseback benefit.

I'm working with the 6.6p EPS forecast which leave them on a PER of 9.4 and reckon they may marginally beat this given the recent acquisition of TWSB which was made on a relatively inexpensive basis if they deliver profits indicated in the RNS:-

£1m acquisition cost payable over 3 years and the vendors guaranteeing that this company will produce profits of £610k over this period.

I also like the fact that the gross margins are up substantially, 42.2% at the interims which was up from 33% the previous year....indication of the positive effect of operational gearing and also that we are likely to see the company growth rate move up several notches once CX5 and CXJ are fully operational.

Hope this answers your question cfro....ping me an email if you wish and I may be able to assist further.


Regards,
GHF

[cfro] 14/1/2012 10:14

I've held shares in these in the past, but sold them as 'financially' they havent lived up to expectations. But it could now be argued that 'operationally' perhaps now they are....

So im taking another little look. Cenkos have PBT of £12.8M and EPS of 6.6p for end of March 2012. At the half year stage they only managed EPS of 3.11p lower than the year before at 3.86p.

Glasshalful, what are you penciling in for this year?

[battlebus2] 14/1/2012 08:25

Hi GHF good to see some new investors. Seems a pretty decent summary to me.

[glasshalfull] 13/1/2012 22:47

Hi Steve

Before I go any further...I've sent you an email.
If your address has changed then ping me on

[e-mail]

Here's a rough 'n ready answer in any case for yourself or any lurkers.

As you are no doubt aware, CSFG have 3 revenue streams ... 2 main ones are development of data centres for other parties and the development of their own portfolio (CX range of centres). Both account for the lions share of revenue c.90%. The 3rd revenue stream concerning maintenance is growing well.

Profits have been flattered in previous year with sale and leaseback following completion of development on a number of the centres in their CX range.
The design and development arm of the company has limited visibility but due to the construction of CX5 this has provided for nailed on revenues of £17m in 2012....and accounts for the £10m you mentioned in your post that was included in the interims.

The beauty with CSFG is that once they've attained full occupancy it is just a licence to print money....economies of scale kick in and lovely recurring revenues at a decent margin pour in. In other words they command high operational gearing.

That begs the question on barriers of entry, "How long can this cash cow last?"

According to brokers notes and snippets I've read it would appear that CSFG are in a sweet spot as they a good relationship with local government and there are a number of barriers such as regulating power supplies, planning and the construction of centreas (and remember that CSFG have their own construction arm ;-)

Growth opportunities abound all over the Far East as the world becomes more data hungry and factors such as the Japanese tsunami and recent Malaysian flood (as noted in the interims) provide further evidence that CSFG are operating in the right industry and right location.

Hope this assists.

Regards,
GHF

[igoe104] 13/1/2012 20:00

Go to the company web-site steve, and spend a couple of hours reading through it.

[stevemarkus] 13/1/2012 11:20

This looks interesting - I like a number of things about the company, but looking at the last results, it seems like a lot of revenue (10M+) came from charges associated with development of the latest data centre. I don't really understand the business model very well - could anyone explain it for me?

Thanks,
Steve.

[glasshalfull] 13/1/2012 10:45

You spoke too soon john09.

Added a few more this morning ;-)

Regards,
GHF

[john09] 12/1/2012 19:17

Sp still showing no life

[corneliusvanderbilt1794] 12/1/2012 18:30

looks good

[2vdm] 09/1/2012 08:05

I also like the bit about ..."We are focused on expanding our footprint into the region, with more high-end commercial data centres in the pipeline in China, Singapore, Thailand and Vietnam."

[battlebus2] 09/1/2012 08:01

Yes great news!

[igoe104] 09/1/2012 07:53

cx5 is opened.

[john09] 03/1/2012 19:10

Hmmm. Got to watch these little foreign aim companies. The company its acquiring is 60% owned by One of the csf directors!

[igoe104] 03/1/2012 17:11

Nice bit of business.

[2vdm] 28/11/2011 11:35

I don't think that they were bad. This company appears to be heading in the right direction, is profitable, has cash, is in a growth sector and is well located to profit from the growth in the Far East. OK, it's not spectacular, but it's early days still and I will continue to add.

[battlebus2] 28/11/2011 07:54

Not stunned by those results.

[igoe104] 24/11/2011 13:31

Expert Stock Picks: Small-Cap Sizzlers
21 November 2011


1. CSF Group (65p)
Founded in 1991, this Malaysia-based data centre company was floated on AIM in March last year. Richard Penny and Mark Slater both participated in the IPO at 55p per share.
CSF is fast becoming one of the major providers of data centre facilities and services in South East Asia. The company has delivered on its strategy so far, and Penny is very impressed by what he sees as a strong business model, with good recurring revenues, in a high-growth market. CSF is his second-largest holding.
CSF will announce its interim results next Monday, and is on a forecast price/earnings (P/E) ratio of 10 for the current year, falling to 8 next year. Mid-teens earnings growth is forecast for both years, and the company already pays a dividend.

[igoe104] 11/11/2011 08:38

I agree, no long-term worries with this company. its going to be a cash cow over the coming years. i see this being over £3 in a few years.

[2vdm] 11/11/2011 07:58

Results announced on 28th Nov. May well see some recovery in the price on the way, but this is a solid long term play