Member login | Not a member? Sign up
Enterprise content management software provider Geong International Ltd says that its revenues are ahead of expectations but profits will fall short of forecasts.
China-based Geong will report revenues of £14m in the year to March 2009, compared with £7.6m in 2007-08. More of those revenues are coming from outside China. Pre-tax profit will improve from £1.1m to £1.6m, although it had been expected to hit £2.2m. Additional sales and marketing costs and higher sales of lower margin products are the reason for that.
The cash position is much better than expected and has risen from £2m to £3m.
China is still investing large sums in industry and infrastructure. For example, RMB400bn will be invested in 3G infrastructure. The government is also incentivising people to buy small cars by paying 20% of the cost and also spending more in the banking sector. These sectors are the main customer base for Geong so it should be able to continue to grow.
Geong has launched an Information as a Service model, which generates revenues over the life of a project. These projects tend to last around six months.
The order book is worth £10.6m, with £5m of that recurring income. Seymour Pierce forecasts revenues of £15m and profits of £2.1m in 2009-10.
At 22p a share, Geong is valued at £6.94m. The shares are trading on less than four times earnings.
© 2023 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Keep up to date with articles published at AIMMicro.com. Subscribe to AIM Micro RSS Feeds