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

Trading update out, which is a little bit disappointing for holders IMV. Lots of puff and whiz about December cash collection, but this is a normal time for payment prior to year end, so you'd expect that.

December (end of year) tends to be a time of lots of contracts, and yet they appear to have picked up just a few small ones.

Also hidden in there is this line "Company believes that this launch will support the sales of PortalAgeTM as well as SmartBoxTM in the current economic climate.

When companies say "in the current economic climate" you know what it means, it means sales are tough, and this is likely shown in the low amount of December orders IMO.

No doubt the ramps and hypes will be out in force today, but its very revealing that one line.......the other stuff is just normal for end of year.

It's been a long time since there were any relevant or useful posts on this thread :o))

Firstly, here's the contract wins and extensions from December 2nd - note 3.3m of contracts in the middle of a supposed recession...

And note that GNG (with a mere 10m m/cap at 32/5p) had a 9.6m order book at the 30th September interims date - this additional 3.3m of contracts was won in just two months following the interims!

http://www.investegate.co.uk/Article.aspx?id=20081202070149P7A3F

"Contract wins and contract extensions worth 3.3m

GEONG International Limited (AIM: GNG), the AIM listed, China based provider of
enterprise content management (ECM) software and solutions, today is pleased to
announce that it has signed a number of contracts within the Chinese financial
services, telecommunications and automotive sectors worth a total of
approximately 3.3 million.

The largest of the financial services contracts is with China Construction Bank
(CCB) and is for a new Generation Portal. This Portal will help CCB build
on-line marketing, research, trading platforms and service functions for their
financial products to significantly improve their on-line business. The
contract, which covers the period of six months, is worth approximately 0.38
million (RMB 4.2 million).

GEONG has also signed two contracts with the Bank of Communications worth 0.4
million (RMB 4.4 million). One contract, worth approximately 0.3 million (RMB
3.2 million) is for the annual maintenance of Bank of Communications current
Enterprise Information Portal whilst the other contract is to build an
E-Learning system based on the PortalAgeTM platform. The new E-Learning system
will be used by the bank to train its 50,000 employees. This is the first
E-Learning system GEONG has developed and will now be offered to existing
customers.

In addition, GEONG has signed contracts with three new clients in the banking
sector: Everbright Bank of China, Industry Bank of China and the Bank of
Shandong. The contracts, worth a combined total of approximately 0.54 million
(RMB 5.9 million) include providing new solutions based on the PortalAge
platform. These include a financial trading and services portal, and a combined
Enterprise Customer Information system and Business Intelligence system.

Approximately 2.3 million of the contract wins and extensions will occur in
the current financial year. Non-disclosure agreements prevent GEONG from
disclosing detail with regards to the telecommunications and automotive sector
contract wins.

Commenting on the contract wins, WeidongWang, Chief Executive of GEONG, said:
"Even in these difficult times,GEONG is continuing to sign new customers,
extend contracts with existing customers and develop innovative new products and
services in new and existing sectors. The nature of our PortalAge customer base,
which is constantly expanding, demonstrates the quality of the products and
service GEONG hasto offer.""

Today's RNS was terrific - another 1.2m of contracts won in just one month since the last 3.3m contracts RNS!

Again, this is in the middle of a downturn when a contracts win is something unheard of...

The cash pile is also up nicely to 1.5m, against a 10m m/cap:

http://www.investegate.co.uk/Article.aspx?id=20090106070000P711F

"Trading Update

GEONG International Limited (AIM: GNG), the AIM listed, China based provider of
enterprise content management (ECM) software and solutions, today is pleased
give shareholders an update on current trading.

The Company has signed eight new contracts worth 1.17 million (RMB11.7
million) in December within the financial services and automotive industries.
These include China Construction Bank ("CCB") (600,000/ RMB6 million) and
Rural Bank of Shandong ("RBS") (240,000/ RMB2.4 million). The CCB contract is
for building a new online financial services portal, to significantly improve
customer services, and the RBS contract for building a new Business
Intelligence and Core Banking System. Other contracts won include Industrial
Bank of China, China Bond, Changshen Mutual Fund, Guoshen Securities,
Shanghai General Motors, and Shanghai Volkswagen. Despite these challenging
times, the contract wins demonstrate GEONG's ability to strengthen their
relationships with new and existing customers within these industries.

In December, GEONG also launched PortalAgeTM SaaS (Software as a Service)
offering which can be integrated with SmartBoxTM SaaS offering. This service
offering is best illustrated by EMC Corporation (EMC2) in China which adopts
PortalAgeTM SaaS for their eBusiness and eCommerce application by linking to
their resellers across China using SmartBoxTM SaaS. This highly cost effective
solution will be very attractive to customers. The Company believes that this
launch will support the sales of PortalAgeTM as well as SmartBoxTM in the
current economic climate.

The Company's cash balance has increased to 1.49 million (30 September 2008:
0.47 million) by the end of December which is in line with management
expectations. GEONG will continue to improve the cash collection system
throughout FY2009. The Company's cash management system is proving to be
effective.

Commenting on the contract wins, Weidong Wang, Chief Executive of GEONG, said:

"We are delighted to announce these significant contract wins, which again
demonstrate our continuing development and quality of our solutions to provide
first class service to our customers. The contract wins together with our
improving cash balance underpins our position as a leading provider of ECM
solutions in China.""

To summarise GNG after today's news:

- 10m m/cap at 32.5p
- compared to say 9m of net tangible assets now, including 1.5m net cash
- forecast to make 2m of profit after tax this year to 31/3/09
- i.e 6.5p EPS this year and a P/E of 5
- forecast to make 3.4m of profit after tax next year
- i.e 9.1p EPS next year and a P/E of 3.6

GNG have already stated (in December) they're confident they'll meet expectations this year. With all the above contract wins and favourable currency fluctuations they may well exceed them imho.

In addition, Seymour Pierce have noted that the scale of GNG's recurring income and contract wins is such that next year's 9.1p EPS forecast looks too low.

GNG also expect to have a net 2.5m cash by 31st March (against that 10m m/cap).

Other excellent news:

- GNG are launching their products as SaaS offerings (Software as a Service) - this is cheaper to operate and utilise for both GNG and their clients
- there's an exciting new partnership with EMC. EMC are one of the largest companies in the world:

http://www.emc.com/about/emc-at-glance/corporate-profile/index.htm

- listed on the S&P500, 38,000 employees, $13 billion of sales...etc

EMC join GNG's existing partners IBM, Microsoft, Dell, Lenovo, Huawei, Oracle, SAP, BEA, Momentum et al....an unbeatable contacts list.

Finally, some broker comment today:

"STOCKS NEWS EUROPE - 06 Jan 2009 - Geong International up after trading update
--------------------------------------------------------------
Shares in Geong International rise over 10% after a trading update in which the content management software provider highlights eight new contracts worth 1.17m in the financial services and automotive industries.

"Today's trading update illustrates that despite the challenging economic
environment, Geong is still executing well and closing new deals," Seymour
Pierce says in a note. "We see Geong, which has an expanding presence in Telecom, as a likely beneficiary of the roll out of 3G services in China, which is expected to trigger $40 billion in investment," says the broker, which rates the stock as "buy". "

The statement talks about the contract win and the cash pile. There was an opportunity to state profits and eps which it didn't take. At a time when disclosure is becoming very important, it is surprising and as such suggests all is not what it might be. There is no way an investor can gamble some hard earned cash on the back of that.

the chinese are not keen on transparency, which is why i (nearly) always recommend avoidance, which advice is often ignored but at considerable cost to those who dive in headlong

If cynic ever made a comment that wasn't negative and showed the remotest sign of balance I would fall off my chair in amazement!

Dealerdear, this was not a trading statement. The interims were out only a month ago! In those interims GNG confirmed they were on track to meet expectations of 6.5p EPS. In a month since then GNG have won 1.2m of contracts (along with the 3.3m announced in December).

It would seem then that things are going fairly swimmingly. Today's RNS was, as promised to shareholders who'd contacted the company, confirmation that GNG are on track in cash collection terms - the contract wins were a bonus!

The year end is 31st March. No doubt around that time or just afterwards (as opposed to three months before the year end) GNG will, as all other companies do, issue a more detailed trading statement. One thing is for sure - if anything had changed from GNG's statement that they would achieve 6.5p EPS then they would be obliged to say so.

In RNS terms it's often what is not said that is as important as what is not said, since you're only obliged to comment if something material/fundamental has changed.

Well said dealerdear and cynic.

Sadly the ADFN ramping crew are at the very worst at the moment, desperate to try and claw back massive losses and ramping like made.

As I said earlier :


Proselenes - 06 Jan 2009 08:10 - 283 of 289
Trading update out, which is a little bit disappointing for holders IMV. Lots of puff and whiz about December cash collection, but this is a normal time for payment prior to year end, so you'd expect that.

December (end of year) tends to be a time of lots of contracts, and yet they appear to have picked up just a few small ones.

Also hidden in there is this line "Company believes that this launch will support the sales of PortalAgeTM as well as SmartBoxTM in the current economic climate.

When companies say "in the current economic climate" you know what it means, it means sales are tough, and this is likely shown in the low amount of December orders IMO.

No doubt the ramps and hypes will be out in force today, but its very revealing that one line.......the other stuff is just normal for end of year.

Looks like the ADFN ramping crew are selling out - LOL

Its lucky there are places like MoneyAM where people have realistic opinions and its keeps those who hype in check.

Nice article here from T.M.F - the title says it all :o))

Good mentions for my Asian faves GNG and CHNS (doesn't mention RCG, but you can't win 'em all!):

http://www.fool.co.uk/news/investing/company-comment/2009/03/24/stocks-so-cheap-theyre-nearly-giving-em-away.aspx

"Stocks So Cheap They're Nearly Giving 'em Away
By Steve Scott

Published in Company Comment on 24 March 2009

"China Shoto (LSE: CHNS) looks like another successful and growing business. The Company manufactures and supplies batteries, mainly to the Chinese market. Its recent trading statement revealed that profits in 2008 will be ahead of market expectations and 50% higher than in 2007. There is some bank debt although it looks comfortably manageable at only 23% of the value of total tangible assets. So why does the market value China Shoto at only 2.9 times 2008 earnings, especially when there is a forecast dividend yield of 4.3% on offer?

It's not alone amongst Chinese based companies in that respect. Fast growing and debt free software provider Geong International (LSE: GNG) may be valued at a more realistic 5.2 times expected current year earnings, however this would fall to only 3.9 times earnings if they meet next year's forecast by broker, Seymour Pierce.

Clearly investors are very sceptical about the sustainability and quality of earnings from Chinese companies. That's not helped by high profile disappointments such as Bodisen Biotech (LSE: BODI). But if the market is wrong, then there is clearly huge upside in these shares."

GNG now 22p - keep collapsing...don't listen to Seymour Pierce. For interest, SVS securities is another which give very bad advice...


GEONG profit lower than forecast

Pre-tax profits at enterprise content management software and solutions provider GEONG International will fall short of expectations.

The firm said profits would be 1.6m for the year to the end of March - up 45% on last year but below the 2.2m expected.

oh dear, oh dear, oh dear!
not yet another chinese company failing to deliver?
what a surprise!

I said it would fail, and it does !!!! You have to be very careful of that rivaldo IMO, blindly ramps crap stocks sometimes, along with Glasshalffull the alter ego.

CHNS is the one to watch in terms of the Chinese companies, that will deliver, but most other Chinese companies are right in the crap.

Surprise, surprise.

Today Seymour Pierce downgrade GNG from BUY to outperform. SELL at 22p.

what's that?
good politico-speak ..... still called as "outperform" but "sell at 22p" ...... have i missed something?????

turnover well up, profit well up but not as high as anticipated, trading excellent despite difficult times for patient investors plus cash in the bank increasing---- I'd call this a good investment. I'm not in at the moment but may well buy back soon.

The current share price is 20p, with a 6.3m m/cap.

Seymour Pierce's new forecasts are:

Y/E 31 March'09 - 4.9p EPS, 1.6m PBT
Y/E 31 March'10 - 6.1p EPS, 2.1m PBT

So the 6.3m m/cap at 20p now plays a likely historic PAT of 1.5m - and maybe a fair amount more - for a historic P/E of 4, plus 3m cash and 10m or more tangible net assets.

I posted this summary on T.M.F for reference a few days ago which sets out the issues raised in the recent trading statement:

http://boards.fool.co.uk/Message.asp?mid=11506384

Assuming GNG confirm in their upcoming results:

- a stated minimum historic PBT of 1.6m
- the stated 3m net cash pile
- 10m+ net tangible assets
- a stable outlook
- an order book comprising x plus say 5m+ annual recurring income
- further contract wins

then the current price will look even sillier than it does currently at a 6.3m m/cap.

The chart says it all for Geong.

Nope, it only shows what you've chosen it to say since the startpoint you chose :o)) It doesn't show that I'm still in profit by 10% and that this thread is only in relatively small loss since it started - which is excellent by most AIM companies' standards.

It also fails to recognise the current situation, which is that imo GNG is extremely undervalued.

To reiterate - and lets have some comments on the actual business for a change...

The current share price is 20p, with a 6.3m m/cap.

Seymour Pierce's new forecasts are:

Y/E 31 March'09 - 4.9p EPS, 1.6m PBT
Y/E 31 March'10 - 6.1p EPS, 2.1m PBT

So the 6.3m m/cap at 20p now plays a likely historic PAT of 1.5m - and maybe a fair amount more - for a historic P/E of 4, plus 3m cash and 10m or more tangible net assets.

I posted this summary on T.M.F for reference a few days ago which sets out the issues raised in the recent trading statement:

http://boards.fool.co.uk/Message.asp?mid=11506384

Assuming GNG confirm in their upcoming results:

- a stated minimum historic PBT of 1.6m
- the stated 3m net cash pile
- 10m+ net tangible assets
- a stable outlook
- an order book comprising x plus say 5m+ annual recurring income
- further contract wins

then the current price will look even sillier than it does currently at a 6.3m m/cap.

It's also now been established that the order book figure given in the last RNS was before 5m of additional annual recurring income. It's therefore likely that GNG already have over 11m of turnover in the bag (per posters on ADVFN) for this year, against the 14m for the whole of last year. Not bad for a 6m m/cap company.

Nice - up 30% or 6.5p on the day to 28.5p now.

GNG are now on a minimum historic P/E of just 5.5 based on 4.9p EPS, with 6.1p EPS forecast for this year. With 35% of the m/cap covered by 3m cash.

Other points worth noting:

- its Balance Sheet strength (3m cash, tangible NAV greater than m/cap)
- its high recurring income and 10m order book
- its top tier client list
- the potential upside given a mere 9m m/cap relative to a minimum historic 1.6m PBT and GNG's market-leading position in China

It's always better to invest at the bottom rather than at the top.