Csf Group Share Discussion Threads

[battlebus2] 10/2/2012 14:24

Do i detect your ignoring battlebus GHF.

[glasshalfull] 10/2/2012 14:15

Yep steg, decent update re. CX5 but the broadly in line comment usually indicates that PTP will come in a touch below the actual forecasts. Having spoken to many FDs and CEOs over the years then this usually means a minor shortfall up to 5%, hence broadly in line rather than a below expectations.

This is probably down to the fact that the tenancy agreement for
CX5 is kicking in several months behind schedule.

The statement also confirms the fact that once tenants are secured for Blocks B & C the operational gearing kicks in and we can expect material growth at this point.

I still like the sector and the company so happy to stick with it. PER will still be single digits and divide yield decent but I agree that it looks more like a slow burner until we receive further progress on securing tenants, positive progress re. CX 6 and securing further sites in the region.


Regards
GHF

[itchycrack] 10/2/2012 14:11

I'm a long term holder too, have shed loads in my SIPP along with Telecity.
Just have to be patient here.

[battlebus2] 10/2/2012 13:52

Yes a distinct lack of comments on here. I'm a long term holder since float so i guess i can say i've seen this all before but then again it doesn't distract me from see the bigger picture.

[stegrego] 10/2/2012 13:26

Not much comment here, usually a sign that people are selling out.

So-so update IMO. Never like to see 'broadly' in-line, as that usually means down 5% or so.

Probably going to be a slow burner here, especially till they fill or part fill Blocks B & C.

I wonder if brokers have downgraded today?

[battlebus2] 10/2/2012 08:13

Sellers appear not to be happy with that statement and the bright opening has gone for now.

[battlebus2] 10/2/2012 07:52

Yes although an inline statement the forward benefits should be substantial imv.

[2vdm] 10/2/2012 07:50

Good update, particularly having tenant who carries out so much for the Malaysian Govt. Covenant should be solid and we will see the benefit of this in 2012/13

[battlebus2] 10/2/2012 07:25

This is a decent update-New Tenancy Agreement and Trading Update


Csf Group PLC

10 February 2012


For immediate release 10 February 2012

CSF Group plc

("CSF" or the "Company")

New Tenancy Agreement and Trading Update

CSF Group plc (AIM: CSFG), a leading provider of data centre facilities and services in South East Asia and the largest provider of data centre services in Malaysia, today announces that it has entered into a tenancy agreement for Block A of its CX5 data centre. The Company also announces a trading update.

Tenancy Agreement

The Company is pleased to announce that it has entered into a tenancy agreement, subject to the satisfaction of certain conditions, with Masterplan MyCenter Sdn Bhd ("MMC") for the rental of the entire Block A of the CX5 data centre measuring 67,000 sq ft for a period of three years at rates that are in line with market expectation.

MMC, an existing tenant of the CX2 data centre, was established by the founder of the Masterplan Consulting Sdn Bhd ("MCSB") group which is a supplier of information and communications technology equipment and solutions including data centre equipment and services focusing on the security and defence sector. MCSB has undertaken projects for various ministries and agencies of the Malaysian government including the Ministry of Defence, the Ministry of Home Affairs, the Royal Malaysian Police and the Ministry of Education. MCSB was appointed by the Ministry of Defence to develop and manage the first defence and security technology park in South East Asia.

The lease rental cost payable by CSF for Block A covers the office building and the data centre building structures and general infrastructure for Blocks B and C. Due to the upfront associated costs of the office building and Blocks B and C, the contribution from CX5 is expected to be minimal for the financial periods up to March 2013. The Board continues to expect the overall profit contribution of CX5 to be significant once new tenants are secured for Blocks B and C.

Trading Update

The Board today confirms that Group revenue and profits are broadly in line with expectations*. The Company expects the business mix for gross profit to be approximately 30 per cent. rental and maintenance and 70 per cent. design and development. The Board remains confident that rental and maintenance revenue will continue to grow in absolute terms and as a proportion of Group profits in future financial periods.

The Group continues to pursue new data centre development opportunities and the directors remain confident of the longer term returns that will be generated from the Company's strategy.

* before any adjustments for exchange rates movements

Adrian Yong, CEO of CSF Group, commented:

"In spite of the challenging global business and economic environment, we believe that our business model continues to be attractive and that our growth strategy will in turn benefit shareholders. The Company is focused on securing new tenants for Blocks B and C of CX5 in order to benefit from the operational gearing within the Group and working on CX6 and beyond. The Group is financially sound, cash generative and dividend paying. We are continuously improving our business processes and look forward to the longer term with confidence."

For further information:


CSF Group
Adrian Yong, Chief Executive Officer [phone]

[battlebus2] 09/2/2012 20:53

Since 1991, the group has undertaken contract works to build and fit-out over 200 data centres and computer support facilities in Malaysia with some installations in Indonesia, China and India.

The group has achieved outstanding financial results even in a global economic climate that continued to be uncertain.

"We are on the right track to achieve profitable growth and increasing sustainable revenue while investing in the longer term core assets of the business - our expertise, employees and customers," Yong said.

In its financial results for the first-half of financial year 2012 announced on Nov 28, 2011, CSF's revenue rose to RM91.7 million from RM46.6 million in the same period of 2011.

Meanwhile, Ongkili said data centre space should be seen as critical infrastructure to the ICT industry as it provides the base for all ICT infrastructures by providing reliable and resilient power to ensure continuous uptime for the country's ICT needs.

"With that GNI numbers, we are set to have approximately five million sq ft of data centre space in 2020. This may sound farfetched, however, we are optimistic that we will achieve it as our lifestyle continuously evolves to embrace the digital boom," he said.
Although the data centre is the base infrastructure, power and telecommunications remain as the critical enablers to the data centre industry.

"These three sectors would have to continously work together to ensure that Malaysia will have a competitive edge and become the data centre hub of choice in the global arena," he added.

Fadhlullah said the other two data centres announced under the EPP 3 - Teliti Datacentres in Bandar Enstek, Nilai and My Telehaus in Cyberjaya - are on track to be completed this year.

[battlebus2] 09/2/2012 20:41

Just a reminder of how the company is progressing.
CSF Group (LSE: CSFG.L - news) plc
("CSF" or the "Company")
CSF Group Opens CX5
Largest Commercial Green Data Centre in Southeast Asia (Other OTC: SUAFF.PK - news)
CSF Group plc (AIM: CSFG), the leading provider of data centre facilities and services in Southeast Asia and the largest provider of data centre services in Malaysia, today launched CSF Computer Exchange 5 (CX5), Malaysia's first commercial green data centre and the largest facility of its kind in Southeast Asia.
CX5 is a carrier-neutral high end purpose built data centre which consists of three blocks of 4-storey buildings and a Class A office block. It offers 201,000 square feet of net data centre floor space and a gross floor area of approximately 580,000 square feet. The facility is one of three data centres developed and operated by CSF Group in Cyberjaya, Malaysia.
CX5 was awarded the provisional Green Building Index (GBI) Certified Rating which recognises the facility as a green, sustainable building that has satisfied certain requirements as determined by the GBI Accreditation Panel. These requirements include among others factors such as the ability to provide energy savings, water savings, a healthier indoor environment, better connectivity to public transport, the adoption of recycling and greenery for their projects, and reducing impact on the environment.
Classified as a Tier 3 data centre, CX5 is designed to host mission critical servers and computer systems. The data centre is TIA-942 compliant and is equipped with fully redundant subsystems including cooling, power, network links, storage and stringent physical security features. Provisions are made in CX5 to be expandable to dual active power sources to the data centre. Two onsite utility power stations are already constructed and mirrored duplication of Mechanical ∓ Electrical plant rooms are ready on each data centre floors for the future upgrading works. All three of CSF Group's high-end carrier neutral data centres in Cyberjaya, CX1, CX2 and now CX5, are linked to a dual-ring electrical grid and advanced fibre connectivity.
CSF Group currently has more than 200 customers in the region. This comprise of companies involved in various industries including government, telecommunications, banking, insurance, automotive, oil and gas, food and beverage, travel, manufacturing, telecommunications and information technology.
Adrian Yong, CEO of CSF Group, commented:
"With the launch of CX5 today, we now operate the largest commercial GBI Certified Rating data centre in Southeast Asia with CX5 forming part of our growth strategy to provide world-class data centre facilities to our customers,
With CX5 we are raising the bar as one of the largest providers of reliable, secure data centre space together with expertise in infrastructure services for our customers in Malaysia and the Asian region. 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.
We remain on the right track to achieve profitable growth and increasing sustainable revenueswhile investing in the longer-term core assets of the business - our expertise, our employees and our customers."
For further information:
CSF Group
Adrian Yong, Chief Executive Officer
Lim Pei Jet, Corporate Marketing and Communications
[phone]

[glasshalfull] 09/2/2012 18:34

Yep, agree with that nurdin.

I've made a point of avoiding all Chinese shares since the GNG delay in releasing results. I realise that it is unfair to boycott an entire set of diverse companies but recognise that a number of esteemed investors are now of a similar view. I simply believe that the recent concerns over the likes of ACHL and receivables issues have altered the risk/ reward nature of my own investment criteria.

Having said that despite some concerns I have over all companies I invest in (always list my pro's and con's) the likes of EROS (Indian), INTQ (Greek) and CSFG (Malaysian) to name a few all remain strong investment opportunities IMHO. I believe each offer excellent investment prospects and despite the apparent xenophobia I think that each will undergo a re-rating in due course.

It may take a few sets of good results or a dual listing (rememeber Velti ;-) or perhaps the apparent undervaluation will result in a predator emerging.

Anyway, in the case of CSFG I like the business model and growth markets it operates in. I'm sure the CEO provided an interview around August 2011 where he intimated that a future listing in the Far East was on the cards in due course. I'll see if I can dig it out over the next few days.

Regards
GHF

[battlebus2] 09/2/2012 18:27

Only problem here is the constant selling everytime we break 60p. At some point they will stop and 80p will be fast approached.

[nurdin] 09/2/2012 17:47

Seems to me that all foreign companies listed on Aim (or fully listed for that matter) are treated with deep suspicion and, to some extent, contempt here.We are still a xenophobic society and unless the attitude changes the rating of foreign stocks will remain under par.I dont know what can be done to change the attitude..

[glasshalfull] 09/2/2012 17:39

You're welcome Steve.

I've been buying sub-60p but missed today's opportunity. Still surprised that they are totally off the radar and share price becalmed while the rest of the market seems to have risen.

Patience is a virtue ;-)

Regards
GHF

[stevemarkus] 09/2/2012 11:05

Yes, I've bought a small chunk too, yesterday. Got them at mid-price. Thanks to all for the discussion, and to Glashalffull for going the extra mile.

Steve.

[gspanner] 09/2/2012 10:42

Bonjour all. Last trade was me, been very patient here....5000 for my sipp. I have found the debates very informative despite a nice quiet BB. Thank you all.

Will re-rate one of these days....

[nurdin] 31/1/2012 12:29

I have often wondered if CSFG can be reasonably compared with IOM.True,they provide data centre facilities and the associated management sevices but thats where the similiarity ends imo.IOM offer a number of other value added services which attract much higher margins than the brick and mortar offerings.For example this is how IOM describe themselves:

''iomart Group plc (AIM:IOM) is one of the UK's leading providers of managed hosting and cloud computing services. From a single server through to private cloud networks, iomart specialises in the delivery and management of mission-critical hosting services, enabling customers to reduce the costs, complexity and risks associated with maintaining their own web and online applications.

By physically owning and managing its own global network infrastructure, iomart offers world-beating levels of service to its customers. The Group offers a unique 100% uptime guarantee with all hosting services being engineered to ensure no single point of failure.

iomart Group operates in its chosen markets through a number of subsidiaries: iomart Hosting, RapidSwitch, Titan Internet, Easyspace and Westcoastcloud. The group has been listed on the London Stock Exchange's Alternative Investment Market (AIM) since April 2000.''

I might be wrong but the extent of CSFGs services fall well short of what IOM offer and therefore the comparison between the two is somewhat inappropriate

I am happy to be corrected though....I still hold by the way.

[glasshalfull] 31/1/2012 12:02

In relation to the last part concerning CSFG's considerable undervaluation in comparison to peer Iomart, I also found a 2-page article in this week's publication of "Shares Mag" in relation to the Iomart growth story.

The interviewer put to the Iomart CEO what he thought about CSFG and following his response cheekily suggests that Iomart might bid for CSFG, concluding the article my saying, "Watch this space."

Hmmm....

Regards,
GHF

[glasshalfull] 31/1/2012 11:57

I've availed myself of a few more shares over the last fortnight. Nice to buy a few under 60p and I see a few others have been doing likewise.

CSFG were tipped in AIM Newsletter's January issue....few snippets below.


"...CSF is making further steps to cements its position in the Malaysian data centre market. Thanks to this acquisition (3rd Jan 2012) alongside CSF's efforts to grow its facilities organically,the company will now be able to offer high performance communications infrastructure services coupled with excellent connectivity, two assets that telecommunication services providers are on the lookout for.

We continue to believe the shares are cheap, with expectations of earnings per share of 6.7p for the current year to March 2012 equating to a prospective multiple of just 9.4 times, significantly below UK peer Iomart (22.9 times), while offering a better dividend yield of 3.5%, compared to 0.8%. Given the company's recent progress, strong cash position and expected growth, we reiterate our recommendation. BUY."

Regards,
GHF

[aishah] 19/1/2012 09:38

Yes, I'm afraid some people get too emotional on their holdings, dis-regarding market and company specifics - OPG prime example at the mo. CSFG on the other hand have sound fundamentals. 31/03/12 fcst eps=6.45, p/e=9.2

[igoe104] 19/1/2012 09:09

Latest press news.

[igoe104] 18/1/2012 09:20

watch out guys a De-ramper at work.

posted by john09 on the opg forum on 21 october.



john09 - 21 Oct'11 - 16:24 - 513 of 766


Could article. CSFG is another good purchase btw.

OPG £3 in 2013. 5 bagger