News blog
BlueStar SecuTech Inc
- BY: Andrew Hore |
- POSTED: 29/11/2009 |
Digital CCTV equipment and services provider BlueStar SecuTech Inc reported lower interim revenue and profit but management believes it is on course for a better second half.
Revenues fell from RMB80.6m to RMB67.3m in the six months to September 2009. The majority of revenues tend to be in the second half and BlueStar is expected to report full year revenues of RMB191m. Much of that second half expectation is covered by contracts that are signed or under negotiation.
The interim profit fell from RMB12.8m to RMB7.27m after an increase in research and development spending.
Chinese banks remain the main customer base for BlueStar but it is starting to generate revenues from the defence sector. Initial revenues are coming from the surveillance centres run with the Beijing police. Another surveillance centre will be opened in the middle of next year. Longer-term, there will be opportunities in other cities.
Cash has fallen to RMB49.3m because of slow collection of debtors. Debtor days were more than 400 at one point but they are coming down. BlueStar says that it has never had a bad debt but the Chinese banks that make up its customer base can be very slow payers.
At 21.5p a share, BlueStar is valued at £15.7m.
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