Software Circle Share Discussion Threads

[boadicea] 15/5/2009 08:19

exp88 - Of course , if you translate from US$ to sterling, the turnover increase looks even better.
However, I think some on here are forgetting to convert US$ to sterling before calculating the assets per share.

Overall, not a bad set of results in current circumstances (p/e ~5 at current sp) but not likely to set the share price on fire. Just enough promise for the future to keep one interested.

[explorer88] 15/5/2009 08:00

market cap £11.8m (7p / share)
net assets (ex. intangibles, property, plant & equipment) £16.6m (9.85p /share)

Trading at discount to net assets

Dividend gives yield of 4.34%

Increase in turnover of 14% - not bad bearing in mind economic conditions.

Four divisions well placed to grow once economic conditions improve

Mention of M&A activity ;-)

[hugepants] 15/5/2009 07:55

Earnings of 1.4p are higher than I thought theyd be given the earlier trading update. And cash + the property loan (10% interest and fully payable in 2 years) covers the market cap.

[philjeans] 15/5/2009 07:46

Nice business. Quite expected this drop off in trade but they have the right approach with more R & D and excellent connections in China.

Cash drop is fully explained.

Overall a pleasing report.

Buy on any pullback - quality job.

[masurenguy] 15/5/2009 07:07

RNS Number : 2945S
Sinosoft Technology plc
15 May 2009

Sinosoft, the China based developer and provider of e-Government software and
services, announces its preliminary results for the year ended 31 December 2008.

Financial Highlights

* Turnover up 13.8% to US$12.1M (2007: US$10.6M)
* Gross profit up 18.7% to US$8.6M (2007: US$7.2M)
* Research & Development expenditure up 26.9% to US$2.0M (2007: US$1.6M)
* Operating profit decreased to US$3.3M (2007: US$4.8M which included a profit on investments of US$1.35M)
* Dividend to be maintained at FY2007 payout of 0.31 pence per share

Operating Highlights

* Completed installation and live testing of the State Administration of Tax
("SAT") project in two districts in the city of Chongqing. However, SAT roll out outside of Jiangsu continues to experience delay
* Sale of add-on services contributing strongly to software revenue growth
* Strong growth in Information Integration division
* Seven new products developed in the areas of export tax and e-government,
expected to generate revenue in FY2009

Commenting on the results, Mao Ning, Chairman of Sinosoft said: "Despite the
tough economic backdrop, I am pleased to announce that the Group's (the Group
being Sinosoft and its subsidiaries) revenue and gross profit have continued to grow. Although net profit has declined somewhat as a result of higher operating costs, this is primarily a result of additional investment in research and development ("R&D") which management believes is essential to support the future growth of the business.

"Overall, our financial position in FY2008 was satisfactory considering the
impact caused by the current economic slowdown. We are fortunate to be a broadly based software business, not dependent on any one income stream. Our results show that the management's strategy of diversifying away from the SAT project is yielding positive results. Our cash position remains strong and I am pleased that we are in a position to propose a dividend to shareholders."

[hugepants] 14/5/2009 19:13

This what they said in the trading update.

"...The pressure on margins and consequent impact on net profit, which is
expected to be significantly below expectations, is mainly due to the Company's investment in marketing and research and development ("R&D")
in order to support the future success of the business...."

It does sound like they are saying they could have met expectations if they had wanted but decided to crank up R&D expense to fuel growth. We'll find out more tomorrow.

[fatfish] 14/5/2009 14:42

No sarcasm here stew

as bard says though Revenue to forecast, margin down due to increased spend on marketing and R&D.

so not overly bothered

thanks for pointing me in the right direction

[siwel100] 14/5/2009 10:36

The two real issues with this one are the odd property "investment" and their holdings not in cash but "cash equivilants". Given their penchant for a bit of speculation that does tend to raise a query in my mind as to how broad a definition they use for equivilants.
Given that their bottom line is going to take a hit, there is an unknown quantity on their actions regarding a dividend, so this one really doesnt need any nasty suprises regarding what we think they have in the bank.
They have already lost two financial directors with no notice and no explanation. This is a company that is either a great long term hold or a tad ripe. Results should give a hopefully clearer direction.
Hardly any volume supporting the recent bounce, so it could get a tad dramatic if negative....Then again the Insti's dropped out at 12p so still plenty of headroom above, if its a clean bill of health on results.
imo

[bardfield1] 14/5/2009 10:27

The trading statement wasn't that bad.
Revenue to forecast, margin down due to increased spend on marketing and R&D.
In addition opportunity to sell it's "Information Collection" add on software to its client base of 30,000.
Let's hope we get a nice surprise tomorrow.

[stewjames] 14/5/2009 07:25

fatfish, assuming you're not being sarcastic, look at the trading statement from December:

[fatfish] 13/5/2009 20:53

StewJames damn I missed where "we've already been warned they'll not be good"
can you point me in the right direction
Ta

[hugepants] 13/5/2009 19:28

The shares should never have fallen so much in the first place. The balance sheet alone should have put a floor of 7p on the share price.

[stewjames] 13/5/2009 16:47

Not that I'm complaining but I'm very surprised by this large rally. I expected to be underwater here for a good long while. Optimism over forthcoming results? If so, why - we've already been warned they'll not be good?

[explorer88] 13/5/2009 08:40

Wimbled - with news of dividend and completion of testing in small and medium sized provinces, 13p on Friday is certainly possible.

Share price still less than net current assets, with loads of cash in the bank .. :-)

[wimbled] 12/5/2009 21:08

friday 13 pence !!!

[love it] 12/5/2009 17:11

lol


ok

Also had some brill results on a Friday!

[masurenguy] 12/5/2009 16:15

OT - Some of you might like to check out another rising Chinese stock, Bluestar Securitech (BSST), which is up nearly 20% today on news of a £4.2m two year contract with the Bank of China. They are designers, manufacturers and distributors of DVRs with a focus on the banking sector who by law in China must monitor every cashier and ATM transaction on CCTV.

They already supply 85% of the mainland banks, have no debt and at the interims last September they had cash of £6.7m. Cash is therefore still over 50% of their current market cap of £12.4m even at the current share price of 17p.

Worth a look but as always DYOR !

[buggy] 12/5/2009 16:04

Notice of results .. to be announce on FRIDAY!!! .>>> not many positive results are announced on a Friday. Friday is almost always a day to bury bad news news. The market will be closed on Sat and Sun hence no sustained impact on share price.
I will surmise that I do not expect the results to be good. The question is how bad and is the worse behind us with good optimism going forward.

Irrespective this company is a good long term hold ... unfortunately in the current market there are plenty of attractive short term positions.

[love it] 12/5/2009 15:41

Is good news expected then? Conference call and all. Is it worth a top up before then :2 2 v 2

[explorer88] 12/5/2009 15:30

Results on Friday, followed by conference call at 10am.

[love it] 11/5/2009 12:14

looks ready again you can buy 10k max on line fulll offer sell 100k at 6.34p 2 bid 1 offer.


up it goes

[hugepants] 08/5/2009 09:57

Getmobile (GETM) worth looking at as well.

It is 92p to buy but has cash of 85p and net working capital of 98p. Earnings were 24p (will be less this year). Will pay a 5.5p dividend if you are a holder on 5th June.

[explorer88] 08/5/2009 09:50

hi cg - my impression is based on a series of communications with Yifa. His English is excellent, his responses prompt etc., unlike the previous FD.

o/t BXTN re-rating nicely (net assets 290p, share price 43p :-))

[cgequityinvest] 08/5/2009 09:44

explorer - I think we need to reserve judgement on the FD. I thought the last one looked good on paper but he presided over a profits warning and had poor communication skills. He has disappeared to "pursue opther interests". Hopefully they have been through a more thorough selection process this time but only time will tell!

[explorer88] 08/5/2009 09:27

250,000 bought at 6p

Impressed by new FD