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

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.

i'll back you up on that med / long trem but i also think 65p friday

LOL - full marks for your persistence! All right, we'll see. :o)

Do we have a broker target price for this stock.?
I have re-read all the previous posts, but not found any mention.

Soul Traders, not sure I agree there - SmartBox is imo the product that could transform GNG as it's a mass-market product with instantly recognisable profits as opposed to PortalAge's spread of revenue over a period of time. The amount of small and medium-sized businesses in China which must need modernisation and efficient content management is mind-boggling, and hopefully GNG have the commercial and governmental contacts to make SmartBox work.

By the way, I've never seen a broker price target for GNG - maybe after a 31/3 trading statement or the year end results?

rivaldo don't overlook vialogy-it's just as exciting as gng. I hold both.

Smartbox will bring in a greater % profit but, per unit, will bring in less than PortalAge.

Thanks Riv, I sit corrected :o)

Yep, I would expect a price target after the FY results. however, you know how it is with these smaller co's - many get overlooked by the analysts.

Having a nice recovery this morning after recent profit-taking: GNG Bid: 55p Offer: 59p Change: 5 only 20K traded so far, and no news that I can see.

Putting on a spurt suddenly at the end of the afternoon: GNG Bid: 60p Offer: 63p Change: 4

results soon maybe?

Probably sometime in May, MP.

Meanwhile, how about this?

Geong International Limited - Contract win

Embargoed: 07.00am, 25 April 2007

GEONG INTERNATIONAL LIMITED

CONTRACT GAIN

GEONG SUPPORTS OLYMPIC 2008 SPONSORS

GEONG International Limited ('GEONG' or 'the Company'), the AIM listed, Beijing
based, provider of content management software and solutions, announces that it
has signed an annual contract to provide its PortalAgeTM software and services
to Lenovo Group Limited ('Lenovo') which the Directors estimate has the
potential to be worth between US$1,860,000 and US$2,620,000.

Lenovo is the third largest PC supplier in the world employing 24,500 people
and supplying PC's to over 160 countries. Under the terms of the contract with
Lenovo, GEONG will design, build, deploy and operate a bespoke system based on
its leading PortalAgeTM Enterprise Content Management software establishing a
worldwide dealer communication and management system.

The system will be an extension of the ThinkWorld Users Club system which was
designed by GEONG and has been used by IBM PC/Lenovo since 2003. GEONG intends
to seek further agreements of this kind and further applications for its
PortalAgeTM software.

Commenting on the contract, Wang Weidong, Chief Executive Officer of GEONG,
said: 'The contract signed with Lenovo highlights the calibre of our software
suite, the quality of our services and the successful execution of our
strategy. I am delighted that PortalAgeTM will be used to support Lenovo in
their global operations and key strategic decisions.''Companies are looking to make the most of the increase in revenue that will
come as a result of the 2008 Beijing Olympic Games and we are seeing an
increase in demand for our software and services. GEONG has now signed
contracts with a number of leading sponsors including Lenovo, Bank of China,
Air China and FAW Volkswagen.

-ends-

Up again today:
GNG Bid: 63p Offer: 66p Change: 3

291K traded. 18 mil mkt cap.

This is just the early days in what looks to be a potential giant of a company. It has most of china's blue chip companies as clients and is a long term hold for me!

MP, I like the way this one is shaping up, too, and may top up the next time it hits a trough. I was back up to double money briefly this morning, so that was nice :o)