I bought some GNG recently at 18p (price now up to 26p) given:

- excellent trading update giving a current year P/E of 8 or 9 on likely 3p-3.5p EPS
- 2.6p historic EPS to 31/3/06 and a historic P/E of 10
- contract wins announced post-IPO in June 2006
- 1.9m of net assets, with 820k of cash, against a 6.8m m/cap
- results to be announced 28th November following the trading update

Here's the trading update:
http://www.investegate.co.uk/Article.aspx?id=20061031080000P4198

I gather GNG's CEO and CHairman (both superb English speakers) will be over here next week to tour the City, give press interviews etc.

GNG intended to raise $7m at IPO, but raised only 500k due to terrible matket conditions at the time in June. Despite this they've now announced that they're almost going to meet the broker's estimates as calculated on raising the full $7m.

GNG should now be on course to make around 3p-3.5p EPS this year to March'07. This leaves them on a current year P/E of only around 8 or 9.

Heres their IPO RNS from 23rd June 2006 (the Board of Directors is extremely impressive):

http://www.investegate.co.uk/Article.aspx?id=20060623081500PF52B

This is what GNG do:
GEONG has established itself as one of the market leaders in the Peoples Republic of China in providing content management solution software products and related services for large enterprises. GEONG's flagship product range, the GEONG PortalAge series, is used by the top 5 Chinese banks and 12 out of the top 20 securities firms in China. It is an enterprise server software product which combines a number of optional business solution components and customisation modules that can be used to provide individual solutions for a range of industries including those that require real-time or time critical applications such as internet banking.

Note the wording a range of industries.

In slightly more detail, GNG has a 6.8m m/cap, with 26.12m shares in issue.

GNG made $1.28m post-tax profit for the year to 31/3/06. At $1.87 that's 685k, or 2.6p EPS, for a historic P/E of just 10.

The brokers forecast on IPO was for $1.89m post-tax profit this year to 31/3/07, or around 3.7p EPS, for a P/E of just 7.

And per the pro forma in the prospectus GNG had at 30/4/06 1.9m of net assets, including 820k of cash, against the current 6.8m m/cap. Thus the continuing business making a $1.28m historic profit after tax is valued at just 4.9m.

The prospectus noted that GNG are trading in line, and there's been some excellent announcements post-IPO at the end of June to indicate that things are continuing to go well:

July : a $350k contract win with Huawei-3Com, who employ more than 4,500 people worldwide:
http://www.investegate.co.uk/Article.aspx?id=20060724074128PFD9C

October : a $500k contract win with Air China:
http://www.investegate.co.uk/Article.aspx?id=20061018071237PC25A

In the same RNS, GNG stated that their solutions "are already being used by Shanghai Airlines and China Travel International and will allow us to gain a larger share in this fast growing sector."

October : core supplier status from IBM:
http://www.investegate.co.uk/Article.aspx?id=20061018071206PB237

November : new contract win with China's Bank of Communication (one of China's "Big Four" banks):
http://www.investegate.co.uk/Article.aspx?id=20061121070205P7788

The reason for the post-IPO fall is some of the pre-IPO $300,000 loan note holders from late 2005 turning their converted stock for a quick profit, and a complete lack of PR. GNG also raised less than they hoped for on IPO because they floated just after the FTSE had dropped calamitously from 6,100 in May to 5,600 - this of course also contributed to the artificial fall in the share price post-IPO.

Note also from the prospectus that 80.16% of the shareholders, including the directors, are locked in for from 6 months to a year, so there are only 5.2m shares in free float, or around 1m worth.

On a 6.8m m/cap, a company making 1m post-tax profit could have rather a long way to go imo. DYOR etc.

Corporate website : http://www.geong.com/Site/Home/EN

Down 6.5p to the minute now.

Grrrr!

why r u surprised?

Oh never mind...it's only money, cynic...can earn it back.

98 wts going on with GNG don;t tell me cynic is right again ..........enough cynic your starting to be a jinx..........lol

Isaiah (aka Cynic) says you should see some respite today, but this is not the end of market turbulence and falls

GNG up today. almost 100k traded: GNG Bid: 66p Offer: 68p Change: 7

Current Forecasts :

HH - No recommendation - 16th Feb 07

2007 PTP ?
2007 EPS = 2.93p

2008 PTP ?
2008 EPS = 5.16p


Seymour - Outperform - 22nd Feb 07

2007 PTP 0.87m
2007 EPS = 2.92p

2008 PTP 1.18m
2008 EPS = 3.69p


Is there a newer HH note ? Given they do not give a recommendation, or even PTP figures, I cannot see how they get to their 08 EPS figure, when they should know a secondary placing should be done before too long imo.

Anyone got a link to the HH update on the 16th Feb ? or indeed any newer one ?

PP:

- firstly, HH are the house broker and like many house brokers (Peel Hunt for one)don't give specific recommendations on in-house stocks, they simply make forecasts which speak for themselves
- secondly, it's obviously Hemscott/your research provider that either hasn't been provided with or picked up the PTP figures. I'm surprised that you can suggest HH don't have PTP figures...you should know better than that
- thirdly, there's absolutely no necessity for a secondary placing imo as GNG had at the last count a cash pile plus over $4m of debtors from blue chip customers which they were intending to factor. In addition, no broker forecasts would ever take account of a "possible" placing in the same way as they wouldn't take account of "potential" contract wins - they use the facts in front of them at the time.

Whether GNG eventually choose to place out some of the founder shares or take advantage of the rise in share price is another matter. Such a move would be beneficial anyway in increasing liquidity and institutional ownership.

All this has been discussed on ADVFN. The HH EPS figures represent a refinement from their pre-IPO note which equated to 5.7p EPS for this coming year based on a much greater level of funding at IPO than was actually achieved. In which case 5.16p EPS for the year about to start to 31/3/08 makes what will be a current year P/E of around 12 look rather cheap imho.

Hi riv,

Thats why I am looking for a copy of the HH report over here, avoiding the AFN BB, its likely to get very nasty like the SOLA one.

I cannot find anyone with the HH report, and I would be very interested to read their latest update.

I agree, if they avoid a secondary placing then potentially they can achieve 5p plus of earnings a share, however, I suspect that SEYP have factored in the placing in their figures, and this is the difference between HH and SP forecasts. However, a company needs cash to grow, they should be thinking of the long term of the company, not the short term headline EPS figure. Raising money at the stage GNG are in is good for them as it builds their battle fund for raising future sales. Growing companies need cash/working cap.

Geong International Limited - Change of Nomad

Immediate release: 13 March, 2007

GEONG INTERNATIONAL LIMITED

CHANGE OF BROKER AND NOMINATED ADVISOR

GEONG International Limited ('GEONG' or 'the Company'), the AIM listed, Beijing
based, provider of content management software and solutions, announces that
Seymour Pierce Limited has been appointed as Nominated Advisor and Broker to
the Company with immediate effect.

-ends-

For further information contact :

GEONG International Limited

Henry Tse, Chairman
Wang Weidong, CEO
T: +86 10 877 30066

Tavistock Communications Limited
Matt Ridsdale
Simon Compton
T: +44 (0)20 7920 3150

Seymour Pierce Limited
John Depasquale
Parimal Kumar
T : 020 7107 8000

Embargoed: 07.00am, 27 March 2007
GEONG INTERNATIONAL LIMITED
NEW AUTOMOTIVE CONTRACT WINS

FURTHER PROGRESS IN THE CHINESE AUTOMOTIVE INDUSTRY
GEONG International Limited ("GEONG" or "the Company"), the AIM listed, Beijing based, provider of content management software and solutions, announces that it has signed two contracts together worth US$460,000 to provide its PortalAge software solutions to Shanghai Automotive Industry Corporation ("SAIC"), one of the largest companies in the Automotive industry in China and a constituent of the Fortune Global 500, and Shanghai General Motors ("SGM"), an existing client of GEONG.
GEONG will provide SAIC with its leading PortalAge software as well as providing technical assistance in order to establish a Dealer Management System ("DMS"). The award of this contract follows GEONG's successful creation and installment of a similar DMS solution developed for SGM. Such DMS solutions enable effective management of data between head office and the company's network of dealerships as well as offering customer relationship management functionality. For SGM, GEONG will provide product support and application maintenance services to help upgrade their customer relationship management (CRM) systems.
Commenting on the contract wins, Wang Weidong, Chief Executive Officer of GEONG said: "We are very pleased to be providing our PortalAge product to a member of the Fortune Global 500. Contracts such as these are establishing GEONG as one of the leading providers of content management solutions in China.
" We are establishing a strong presence within China's automotive industry and continue to seek further growth in this area of our business, " he added.

Very good news.

GNG Bid: 54p Offer: 57p Change: 4.5

i think there will be a lot more to come from this company this week soul traders 65p by friday

We're all in favour of more good news, Micky. I agree it would be good to see the mid-sixties again, as that would double my money :o)

149k traded. Mkt cap 15 mil.

GNG gets its skates on again: GNG Bid: 58p Offer: 62p Change: 3.5 87K traded

65p is looking good s-traders

Yep. Still on low volume, too.

However, I'll add that I'm in this for at least the medum term, if I can help it, so won't be too worried if we don't hit that 65 mark.

More good news - posted elsewhere by wanglong1981 from the SmartBox web site:

"27/03/2007 Geong has signed a contract with Beijing Jinguanfangzhou Paper Logistcis Co., Ltd. to provide its smartbox software solutions. It does not specify the contract value.

According to Jinguanfangzhou Paper's website, They are the Chinese leading wholesaler of paper products and raw materials. The paper and relevant products has the third largest market value in China wholesale business only less than oil, steel but larger than automobile."

Good to see just before the year end - since SmartBox sales are accounted for immediately from memory this contract could impact the 31/3/07 figures nicely.

Yet another blue chip then - how impressive is this as the "Chinese leading wholesaler of paper products and raw materials"?

Good stuff. Nice post, Riv.

I thought SmartBox would be inherently less valuable in revenue terms as it is an off-the-peg solution (correct me if I'm wrong about any of this!).

However, the contract sounds like a very decent endorsement of GNG's product, and is clearly a good one for Geong to point at when asked "Who are your customers for this product?"

PDYOR, etc.